Why does an increase in supply cause a decrease in a good's equilibrium price?

Name: Why does an increase in supply cause a decrease in a good's equilibrium price?
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Quizplus · Accepted Answer

When there is an increase in supply, it means more of the good is available than before at the same price. This leads to a surplus, where the quantity supplied exceeds the quantity demanded at the old price. To sell this excess supply, firms are incentivized to lower their prices, which leads to a decrease in the equilibrium price.

Why Does an Increase in Supply Cause a Decrease in a Good's