Question

Suppose OPEC announces it will increase production. Using supply and demand analysis to predict the effect of increased production on equilibrium price and quantity, the first step is to show the:

Answer 1

to show the curve shifting to the right

Well, if the quantity of the production increases, the Curve will move to the right.

An as it progress, the cost price will somehow decrease ( if you produce your products in a large quantity it will lower the cost per unit)