In a Small Town of 3,000 People,the Number of Car

Multiple Choice

In a small town of 3,000 people,the number of car washes has grown from two to five in the last two months.Which result will likely occur?

A) The increase in supply will have no effect on the equilibrium price.
B) The increase in supply will lead to a decrease in demand.
C) The increase in supply will lead to a decrease in the equilibrium price.
D) The increase in supply will lead to an increase in demand.
E) The increase in supply will lead to an increase in equilibrium price.