If the supply of a good increases and the demand stays const
If the supply of a good increases, and the demand stays constant:
There is an increase in both equilibrium price and equilibrium quantity
Equilibrium price increases, and equilibrium quantity decreases
Equilibrium price decreases, and equilibrium quantity increases
There is a decrease in both equilibrium price and equilibrium quantity
Solution
Equilibrium price decreases and equilibrium quantity increases.
Explanation:
The supply increase will shift the supply curve to the right and with no change in demand, there will be surplus in the market resulting in the price to fall down. And also, the quantity sold will increase with the increase in supply.
