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Due to entrance of new firms to produce masks and sanitisers supply increases and supply curve shifts to right. A change in supply will cause equilibrium price and output to change in opposite directions.
An increase in supply will cause a reduction in the equilibrium price and an increase in the equilibrium quantity of a good. The increase in supply creates an excess supply at the initial price.Excess supply causes the price to fall and quantity demanded to increase.
Regards
Due to entrance of new firms to produce masks and sanitisers supply increases and supply curve shifts to right. A change in supply will cause equilibrium price and output to change in opposite directions.
An increase in supply will cause a reduction in the equilibrium price and an increase in the equilibrium quantity of a good. The increase in supply creates an excess supply at the initial price.Excess supply causes the price to fall and quantity demanded to increase.
Regards
