A rise in the supply of a commodity cause?

A. an increase in the equilibrium price and decrease in the equilibrium quantity bought and sold
B. an increase in both equilibrium
C. a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold
D. a decrease in both equilibrium

Correct Answer: Option C

C. a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold

Explanation

If supply increase while the demand remains constant, there will be an excess supply over demand which will lead to a decrease in the equilibrium price and an increase in equilibrium quantity.