please provide a real world example of effects of an increas

please provide a real world example of effects of an increase in supply

Solution

The best example can be from the oil world that is seeing huge decline in crude oil prices these days due to increase in supply driven by increased supplies from shale reserves. Now we have higher supplies of crude oil that is much above the demand of crude oil, this scenario is leading to decline in crude oil prices to record lows. This might result in shutting of some of the oil production companies with higher costs .