Question

If a variable causes a rightward shift on the supply curve, what impact will that have on the products price? Why?

Answer 1

Answer

decreases the price

the rightward shift of supply curve means a decrease in the price and increase in the quantity as the equilibrium is at

Qd=Qs

where demand is downward sloping so the increase in supply cuts the demand curve at a lower price

theoretically

the rightward shift increases the supply and demand is constant so the buyers purchase the goods at lower prices because the supplier is ready to supply

also, the market initially is in surplus at the old equilibrium price so the surplus pressures the price to reduce at the lower level.