True/False: An increase in supply without any changes to demand will cause the price to rise?

Question

Need answer - if False, need the correct answer to plot on supply and demand chart. HELP!

Answer 1

Increasing the oil supply will just flood the markeet with more dollars as China is the biggest growing consumer and they are using our dollars to buy oil.  It's bad for the US.

Answer 2

false.....you'll have to supply the correct answer. Show your supply line moving and your demand line standing still, and you'll see a decrease in the price.

Answer 3

False.  An increase in supply w/ no extra demand leads to lower prices.

supply and demand are inversely proportional to one another.  (more demand same supply rising prices, same supply less demand lower prices, same demand less supply rising prices less supply same demand rising prices)

  a chart would look something like an x...

Answer 4

take your supply and demand line that form an X. remember supply is going up and demnd is going down. now keep the demand line the same and shift the entire supply line to the right.

You will now notice that the equalibrium price has fallen when compare to your first graph. This shows the cause-effect relationship.