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If there is an increase in supply, the supply curve will be shifted to the right. This leads to a decrease in the equilibrium price and an increase in equilibrium quantity.

This is easy to see if you draw it out.

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11y ago
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15y ago

An increase in demand shifts the demand curve to the right. The supply curve does NOT shift. The shift in the demand curve will result in a higher price, and a higher quantity sold.

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14y ago

unchanged; equilibrium price will change: It will decrease so as to avoid .excess supply

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12y ago

both wiull stay the same (icrease)

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14y ago

The qty and the price will go up.....

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Q: If the demand for a product remains the same and the supply increase what will happen to the equilibrium price?
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Related questions

What is an increase in demand likely to lead to?

If there is an increase in demand, there will be increase in the price of the product if the supply remains the same. But if the manufacturer or supplier is able to supply increased quantity of product there will be no major effect.


When demand rises and supply remains the same equilibrium price will... and equilibrium quantity will?

If aggregate demand rises and aggregate supply remains the same, the quantity supplied which increase. Consequently, the equilibrium price will increase, as will the equilibrium quantity. LOOK AT LINK BELOW: http://upload.wikimedia.org/wikipedia/en/thumb/e/eb/Supply-demand-right-shift-demand.svg/240px-Supply-demand-right-shift-demand.svg.png As you can see, if demand increased from D1 to D2, the price level would increase from P1 to P2, and the output would increase from Q1 to Q2. Hope this helps!


An increase in demand will cause the equilibrium price and quantity to rise?

An increase in demand will cause the equilibrium price to fall and equilibrium quantity to rise.


Example of market equilibrium?

Market equilibrium is when the demand of the product and the supply of the product is equal. If either demand or supply changes, then the equilibrium adjusts.


What happens if demand and supply increase?

the price and value of the item will decrease.


Why does the supply curve increase or decrease?

The supply and demand curve follows four basic laws :If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.


What happens to supply when demand increase?

When the demand of a product increases, so will the supply. Manufacturers will produce more of the product in order to get more money.


What will cause a change in equilibrium price?

The equilibrium once disturbed by a price change, reacts based on which direction the price was changed. Higher prices reduce demand and increase supply, while lower prices increase demand and lower supply.


Explain the effect on the equilibrium price and quantity if increase in the price in product?

If the price increases it means there is not a lot of product avaible. This is seen when a company can not keep up with demand the tend to raise prices so that demand goes down. This is also seen in with the opposite effects, if a company has too much of a product then they lower prices to increase demand


What is stable demand?

The demand for a product which is related to the basic needs of life or without that product or good we can't survive, should be stable, such as : water, cloths, food, shelter, etc. In the above mentioned case the demand of such goods remains stable if there is an increase in prices . So stable demand means the demand of any product always remains constant whether its prices rises or not..


What happens to equilibrium price of a commodity if there is decrease in its demand and increase in its supply?

Equilibrium price increases


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The price of a product when demand equals supply