$$\text { Rightward shift in supply } + \text { unchanged demand curve } =$$ lower equilibrium price and larger equilibrium quantity.

Question

Quizplus · Accepted Answer

When there is a rightward shift in the supply curve (meaning, there is an increase in supply), and the demand curve remains unchanged, there will be a surplus in the market. This surplus will cause sellers to lower the price in order to attract buyers, leading to a lower equilibrium price. At the same time, the larger supply available will lead to more quantity being exchanged in the market, resulting in a larger equilibrium quantity. When there is a rightward shift in supply and the demand curve remains unchanged, the equilibrium price decreases and the equilibrium quantity increases. This is because the increase in supply means there is a greater quantity of the good available at every price point, and suppliers are willing to lower their prices to sell their extra supply. As a result, the equilibrium price decreases and consumers are able to buy more of the good at the new lower price, leading to an increase in equilibrium quantity.

Rightward shift in supply + unchanged demand curve =\text { Rightward shift in supply } + \text { unchanged demand curve } = Rightward shift in supply + unchanged demand curve =

$\text { Rightward shift in supply } + \text { unchanged demand curve } =$