An increase in supply is shown graphically as a __________ shift of the supply curve,and as a result of an increase in supply,equilibrium price will __________.

Question

Quizplus · Accepted Answer

An increase in supply is shown graphically as a rightward shift of the supply curve, meaning that producers are now able to supply more of the good at each price level. As a result, the equilibrium price will decrease as there is now a surplus of the good and producers must lower their prices to sell all the excess supply.

An Increase in Supply Is Shown Graphically as a __________