Answer to Question #236880 in Microeconomics for OK MOLEFE

Question

When avocadoes are in season, the quantity supplied is high, but the price is low. Why is it not in line with the law of supply?

Explain with diagram

Answer 1

If there is an increase in supply while demand for the goods remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.