micky2894 micky2894
  • 07-02-2019
  • Business
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If the supply curve shifts outward (right), consumer surplus will and price will

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LearnGrow
LearnGrow LearnGrow
  • 18-02-2019

If the supply curve shifts outward (right), consumer surplus will increase and price will decrease. The supply curve represents that the higher the price (all other things constant) the larger the quantity supplied. Shift of the position of the supply curve depends on several factors like change in costs, change in labour or raw material costs. Right shift denotes higher demand and lower prices, left shift on the other hand denotes decreases demand for the product.

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