The supply of commodity II increasing from S1S1 to S2S2
Answer Details
If the supply of commodity II increases from S1S1 to S2S2, it will lead to a fall in price from OP1 to OP2. This is because when the supply of a commodity increases, there is more of it available in the market. As a result, buyers have more options and sellers may have to lower their prices to attract customers.
This shift in supply causes the supply curve to shift to the right, intersecting the demand curve at a lower price point. This means that the equilibrium price of the commodity will decrease from OP1 to OP2, resulting in a decrease in the price of the commodity.
