Concept:An increase in supply shifts the supply curve to the right, creating a new market equilibrium.
Explanation:At the previous equilibrium price, quantity supplied becomes greater than quantity demanded.
This leads to excess supply, or a surplus, in the market.
Sellers reduce the price in order to clear their unsold stock.
Consequently, the equilibrium price decreases.
At this lower price, buyers are willing to purchase a larger quantity.
Therefore, the equilibrium quantity increases.
Answer:Equilibrium price falls and quantity rises. Option B.