Question

Susie decided to start selling lemonade on her street. The other kids in the neighborhood noticed that Susie was making a lot of money selling lemonade. These kids decided to open their own lemonade stand. When they opened their own lemonade stand, the equilibrium price:

Answer 1

Decreases and the equilibrium quantity increases

Step-by-step explanation:

If more children join Susie in the lemonade business, the supply of lemonade would increase. This is indicated by a rightward shift of the supply curve. Because supply has increased relative to demand , price would fall and equilibrium quantity would increase.

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