Answer:
The equilibrium price is expected to decrease
Explanation:
Here, we want to state what will happen to the equilibrium price when the supply go a product increases but the demand stays the same
What will happen is that the equilibrium price is expected to fall since in this particular case the supply of the product will actually exceed the demand for it
So all things being equal, the demand for the product at increased supply will drive a decrease in equilibrium price
Answer:
Fall to a lower price and equilibrium quantity will increase
Explanation:
The principle of demand and supply shows the relationship between the quantity of goods consumers are willing to buy and the quantity suppliers are willing to sell.
When supply is higher than demand prices tend to fall. This is because there is now a surplus of goods for the consumer to buy. They will have the choice of buying at lower prices from suppliers willing to let go of the excess goods.
On the other hand when supply is less than demand prices will rise. This is because goods will be scarce and consumers are willing to pay higher for the scarce goods
