In the context of economic recovery, what effect does an increase in supply typically have on market equilibrium?

When there is an increase in supply, it means that producers are making more goods available in the market. This usually leads to a lower price for those goods because there is more of them than people want to buy at the original price. As prices drop, more consumers are likely to buy the products, which helps to clear out any excess supply. For example, if a bakery produces more bread than usual, the price of bread might fall, encouraging more customers to buy it. This process helps to restore balance in the market, known as market equilibrium, where the quantity supplied matches the quantity demanded.