Master the National Economics Challenge 2025 – Unleash Your Inner Econ Whiz!

The situation where demand remains unchanged but supply increases is best described by a supply shift. When supply shifts to the right on a supply-demand graph, it indicates that producers are willing and able to sell more of a good or service at every price level. An increase in supply leads to an abundance of goods available in the market, which typically results in a lower equilibrium price, as the quantity supplied exceeds the quantity demanded at the previous price level.

This shift does not alter the demand side of the equation; it strictly reflects changes in the supply side, hence defining the term accurately as a "supply shift." Other options do not correctly characterize this scenario. A demand shock would refer to a sudden change in demand rather than supply. An increase in quantity supplied suggests a movement along the curve rather than a shift, and a decrease in equilibrium price is a likely result of the supply shift, but it does not describe the phenomenon itself.