[amp_mcq option1=”Larger quantity of the commodity at an increased price” option2=”Larger quantity of the commodity due to increased taxation on that commodity” option3=”Larger quantity of the commodity at the same price” option4=”Larger quantity of the commodity at the decreased price” correct=”option3″]
The correct answer is: C. Larger quantity of the commodity at the same price.
Expansion in supply refers to a situation when the producers are willing to supply a larger quantity of a good or service at the same price. This can happen for a number of reasons, such as:
- A decrease in the cost of production.
- An increase in the demand for the good or service.
- An increase in the number of producers in the market.
Expansion in supply is a good thing for consumers, as it leads to lower prices and a wider variety of goods and services to choose from.
Option A is incorrect because it refers to a decrease in supply, not an increase.
Option B is incorrect because it refers to a decrease in demand, not an increase.
Option D is incorrect because it refers to a decrease in price, not an increase.