Question

What happens to the price of a good or service when supply increases and demand decreases?

Select {responseValue}
The price increases.

Select {responseValue}
The price stays the same.

Select {responseValue}
The price is eliminated.

Select {responseValue}
The price decreases.

Answer 1

Select {responseValue}
The price decreases.

Explanation: An increase in supply and a decrease in demand both put downward pressure on price, so equilibrium price falls.