An increase in supply with no change in demand causes a decrease in the equilibrium price and an increase in the equilibrium quantity in a market.

Question

Quizplus · Accepted Answer

When supply increases without a change in demand, the supply curve shifts to the right, leading to a lower equilibrium price and a higher equilibrium quantity as suppliers are willing to sell more at each price level, and the market adjusts to a new equilibrium.

An Increase in Supply with No Change in Demand Causes