2.3 Changes in Market Equilibrium S Price P Q2 Q1 Q3 Quantity New Equilibrium Following Shift in Supply When the supply curve shifts to the right,the market clears at a lower price P3 and a larger quantity Q3.2.3 Changes in Market Equilibrium Quantity Price Q1 Q3 P3 P1 When the supply curve shifts to the right, the market clears at a lower price P3 and a larger quantity Q3 . S S’ D New Equilibrium Following Shift in Supply Q2