When a supply curve shifts,the equilibrium price will change in the opposite direction from the shift in supply and the quantity traded will change in the same direction as the shift in supply.

Question

Quizplus · Accepted Answer

This is the law of supply and demand, which states that if there is an increase in supply, the equilibrium price will decrease and the quantity traded will increase, while if there is a decrease in supply, the equilibrium price will increase and the quantity traded will decrease.

When a Supply Curve Shifts,the Equilibrium Price Will Change in the Opposite