If supply increases, the equilibrium price will rise and the equilibrium quantity will fall.

Question

Quizplus · Accepted Answer

When supply increases, the equilibrium price will decrease and the equilibrium quantity will increase. This is because there is now more supply available, causing the price to decrease in order to sell all of the available quantity. As the price decreases, consumers will be more willing to purchase the product, which will increase the quantity demanded. The intersection of the new supply and demand curves will result in a new equilibrium point with a lower price and higher quantity.

If Supply Increases, the Equilibrium Price Will Rise and the Equilibrium