Any change that shifts the supply curve outward to the right and does not affect the demand curve will lower the equilibrium price and raise the equilibrium.

Question

Quizplus · Accepted Answer

When the supply curve shifts outward to the right, it means that producers are offering more goods or services at each price level. This increases the quantity supplied at each price, leading to a surplus of goods. As a result, the equilibrium price decreases, and the equilibrium quantity increases. This is because producers have to lower their prices to sell more goods, and consumers can demand more at the lower prices.

Any Change That Shifts the Supply Curve Outward to the Right