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

Question

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

Quizplus · Accepted Answer

When the supply curve shifts outward to the right, it means there is an increase in the quantity supplied at every price level. This leads to a surplus of goods in the market, which puts downward pressure on the price. As a result, the equilibrium price will decrease, while the equilibrium quantity will increase. The demand curve remains unchanged in this scenario.

Any Change That Shifts the Supply Curve Outward to the Right