What is the effect on the equilibrium price of salmon when there is an increase in supply?

When there is an increase in supply, the overall quantity of salmon available in the market rises. According to the laws of supply and demand, when the supply of a good increases while demand remains constant, the excess availability of that good leads to a decrease in its equilibrium price.

The reasoning behind this is straightforward: with more salmon available, sellers may need to lower their prices to attract buyers and sell their surplus. As the price decreases, more consumers may be willing to purchase salmon, which in turn can lead to an increase in the quantity demanded. Ultimately, the equilibrium price adjusts downward due to the increase in supply, leading to a new market equilibrium at a lower price point.

Thus, the assertion that the equilibrium price decreases as a result of an increase in supply is aligned with fundamental economic principles regarding market behavior.