An increase in supply, with demand unchanged, generally lowers equilibrium price and raises equilibrium quantity.

### Why this is right A supply increase shifts the supply curve to the right. At the original price, sellers offer more than buyers demand, putting downward pressure on price; the new equilibrium has a lower price and a higher quantity, assuming demand is unchanged. ### The concept Comparative statics compares an initial equilibrium with a new equilibrium after a curve shifts. The result depends on which curve moves and whether the other curve remains unchanged. ### Remember More supply tends to mean a lower equilibrium price and a higher equilibrium quantity.