If the supply curve shifts to the right what happens to the

If the supply curve shifts to the right what happens to the equilibrium point (ceteris paribus)? If the supply curve shifts to the right, what does the resulting equilibrium point show us in terms of market price and the amount produced (ceteris paribus)?

Solution

If the supply curve shifts to the right the equilibrium point also changes and settles on a lower point . Supply curve respond by shifting inward if there is an assessment of a negative impact to production costs or demand.