Equilibrium price will decrease and quantity will increase in which of the following conditions?

Increase in supply

The correct answer is Option 4: Increase in supply

• Equilibrium price and equilibrium quantity are determined by the intersection of the demand and supply curves.
• When supply increases (i.e., more goods are available in the market), the supply curve shifts rightward.
• This causes the equilibrium price to fall and the equilibrium quantity to rise, as producers are willing to sell more at lower prices.