Question

What will be the effect on the equilibrium price and quantity if the supply curve shifts to the left and right side? Explain it by a diagram.

Answer 1

Answer:

If the supply curve shifts left, say due to an increase in the price of the resources used to make the product, there is a lower quantity supplied at each price. ... A rightward shift in the supply curve, say from a new production technology, leads to a lower equilibrium price and a greater quantity.