a-new-supplier-enters-the-market-for-electric-cars-increasing-the-overall-supply

Question

A new supplier enters the market for electric cars, increasing the overall supply. What is the expected impact on the equilibrium price and quantity?

Accepted Answer

Equilibrium price decreases, equilibrium quantity increases.

Answer

Equilibrium price increases, equilibrium quantity decreases.

Answer

Equilibrium price and quantity both decrease.

Answer

Equilibrium price and quantity both increase.