Question

For a downward-sloping demand curve, all other things remaining constant, a rightward shift of the supply curve _____

Answer 1

Increase equilibrium quantity and equilibrium price would fall

Step-by-step explanation:

A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.

Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :

1. A change in the price of input

2. A change in the number of suppliers

3. Government regulations

Equilibrium price is the price at which quantity demand equal quantity supplied.

If there is a rightward shift of the supply curve, it means that there is an increase in supply. As a result, there would be an increase equilibrium quantity and equilibrium price would fall.