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- Equilibrium quantity increases when there is a change in the determinants of supply and/or demand, resulting in a new equilibrium price and quantity1. The producer has a greater incentive to supply an item if the price is higher, so as the price of a product increases, so does the quantity supplied2. Meanwhile, the demand curve, representing buyers, slopes downwards, indicating an inverse relationship between the price and quantity demanded2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Changes in the determinants of supply and/or demand result in a new equilibrium price and quantity. When there is a change in supply or demand, the old price will no longer be an equilibrium. Instead, there will be a shortage or surplus, and price will subsequently adjust until there is a new equilibrium.www.khanacademy.org/economics-finance-domain…The producer has a greater incentive to supply an item if the price is higher. Therefore, as the price of a product increases, so does the quantity supplied. Meanwhile, the demand curve, representing buyers, slopes downwards. This is because there is an inverse relationship between the price and quantity demanded.www.investopedia.com/terms/e/equilibrium-quantit… - People also ask
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