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Sixty new grocery stores opened. This will both the price and quantity

Sixty new grocery stores opened. This will both the price and quantity of food in the marketplace. A.affect B. not affect

2 months ago

Solution 1

Guest Guest #6876635
2 months ago

Answer:

The correct answer is option A.

Explanation:

Opening up of sixty new grocery stores will increase the supply of food in the market. As a result, the supply curve will shift to the right.  

This rightward shift in the supply curve will cause the equilibrium price to decrease and equilibrium quantity to increase.  

So we see that opening up of these grocery stores is affecting the equilibrium price and equilibrium quantity.

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