Since, the market is in equilibrium, the increase in supply in comparison to increase in demand will cause the equilibrium price to fall.
Market equilibrium is a situation where there is a balance between market demand and supply sue to which the price of commodities remain stable. The price will remain stable as long as there is no shift in the forces of demand and supply.
If the market demand goes beyond the market equilibrium in that case the prices will go up because supply is not that much as compared to demand. But in case, market supply goes up and demand stays in position of equilibrium in that case the price will go down. Hence shift in demand and supply factor would affect market equilibrium.
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