Suppose OPEC announces that it will increase production.Using supply and demand analysis to predict the effect of increased production on equilibrium price and quantity, the first step is to show the:
A)demand curve shifting to the right.
B)demand curve shifting to the left.
C)supply curve shifting to the right.
D)supply curve shifting to the left.

Question

Quizplus · Accepted Answer

An increase in production by OPEC would result in a rightward shift of the supply curve, indicating an increase in supply, which typically leads to a lower equilibrium price and a higher equilibrium quantity.

Suppose OPEC Announces That It Will Increase Production