Holding demand constant, an increase in supply leads to A) ...

[LCritchfi]

Holding demand constant, an increase in supply leads to
 
  A) lower prices and higher quantity demanded.
  B) lower prices and lower quantity demanded.
  C) higher prices and higher quantity demanded.
  D) higher prices and lower quantity demanded.

Question 2

Which of the following leads to an underallocation of resources to a specific economic activity?
 
  A) external costs
  B) external benefits
  C) marginal costs
  D) effluent benefits

[sarahccccc]

Answer to Question 1

A

Answer to Question 2

B

[LCritchfi]

Thanks for the timely response, appreciate it

[nothere]

Excellent