Respuesta :

An increase in the number of sellers of a good will reduce price of the good for that good equilibirum.

A change in supply will cause equilibrium price and output to change in opposite directions means that if the output will increase then the price will decrease.

An increase in supply will always  cause a reduction in the equilibrium price and  in this case an increase in the equilibrium quantity of a good.

The increase in supply leads to an excess supply at the initial price. which further  causes the price to fall and quantity demanded to increase.

However, a decrease in supply will always cause an increase in the equilibrium price and a great fall in the equilibrium quantity of a good.

The decrease in supply  always leads to an excess demand at the initial price which further leads to the price to rise and quantity demanded to decrease.

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