An increase in supply produced all other things remaining th

An increase in supply produced, all other things remaining the same: A.Shifts demand and lowers the equilibrium price B.Increases supply and lowers the equilibrium price C.Lowers the equilibrium price only D.The effects on demand and supply are indeterminable

Solution

B) Increases supply and lowers the equilibrium price.

Explanation:- An increase in supply produced, all other things remaining the same causes the supply curve shifts to the right and accoordingly increases the supply and the equilbrium price will fall. It implies a situation of excess supply (Supply > Demand).

Note:- Option B given in the question is quite better and more boader in terms of meaning than the Option C. Therefore, I selected Option B instead of Option C.

Conclusion:- Option B is the right answer. [Increases supply and lowers the equilibrium price.]