Final answer:
The effect of an increase in supply on Total Revenue (TR) is dependent on the price elasticity of demand. Without knowledge about elasticity, TR could potentially fluctuate unpredictably. Generally, an excess supply leads to lower prices but higher quantities sold.
Step-by-step explanation:
When supply increases while the demand remains constant, theory suggests that the equilibrium price would usually decrease, but the equilibrium quantity would increase. This is because additional supply, assuming unchanged demand, puts downward pressure on prices. However, the effect on Total Revenue (TR) is not as straightforward. The change in TR depends on the price elasticity of demand. If the demand is elastic, TR might decrease as the lower price reduces revenue more than the increase in quantity sold compensates. In contrast, if the demand is inelastic, TR may increase because the quantity sold increases by a proportion more than the price decreases. In summary, without information about the price elasticity of demand, one cannot definitively state whether TR would increase or decrease; it may fluctuate unpredictably.