Question

if the supply of a product increases, then

Answer 1

In the event that supply expands, it doesn't really affect demand. The demand remains constant.

In a more exemplary illustration, if demand stays constant, say for oil, and supply diminishes (say a sea storm wipes out refinery limit), value goes up, as there is less supply to satisfy the demand.

The correct answer relies on upon the way of the demand if the present supply has falsely reduced by being priced distant, then extra supply may diminish cost and increase demand, as individuals who couldn't ordinarily have managed that gallon of gas, now can at the lower cost.