As a result of an increase in supply, ceteris paribus, the equilibrium price decreases and the equilibrium quantity increases.

Question

Quizplus · Accepted Answer

This is a basic principle of supply and demand. When supply increases, it leads to a surplus of goods, which then puts downward pressure on the price. As the price drops, demand increases, and producers are willing to produce more goods, resulting in an increase in equilibrium quantity.

As a Result of an Increase in Supply, Ceteris Paribus