Which outcome is expected from an increase in supply reflected by the rightward shift of the supply curve?

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An increase in supply, represented by a rightward shift of the supply curve, typically leads to a decrease in prices. This occurs because, with more goods available in the market, sellers must compete to attract buyers, often resulting in lower prices to facilitate sales. When the supply of a good increases, assuming demand remains unchanged, the surplus of goods leads to downward pressure on market prices until equilibrium is reached.

In this context, the adjustment in price is a natural market response to the increased availability of goods. As suppliers lower prices to sell the excess inventory, consumers benefit from the lower costs, stimulating potentially higher consumption without a corresponding increase in demand. This is a fundamental principle of supply and demand in economics: when supply increases and demand stays constant, price typically decreases.

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