A rightward shift of the supply curve in a market with a downward-sloping demand curve will lead to a(n)
A)decrease in equilibrium price.
B)excess supply at the old equilibrium price.
C)increase in quantity demanded.
D)All of the above.

Question

Quizplus · Accepted Answer

A rightward shift of the supply curve indicates an increase in supply. This leads to a decrease in equilibrium price (A), creates excess supply at the old equilibrium price (B), and increases the quantity demanded due to the lower price (C). All these effects occur together in this scenario.

A Rightward Shift of the Supply Curve in a Market