When there is an increase in supply in a market, the initial effect is typically a surplus, as the quantity supplied exceeds the quantity demanded at the original price. This surplus puts downward pressure on prices, prompting sellers to reduce their prices to attract more buyers. As prices decrease, the quantity demanded increases while the quantity supplied may also adjust as producers respond to lower prices. Eventually, the market reaches a new equilibrium where the quantity supplied equals the quantity demanded at the new, lower price.
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