Figure 2.8 Effects of an Increase in the Supply of Tomatoes
With cheaper fertilizer, farmers supply more tomatoes at every given price and the supply curve shifts outward from S1 to S2. The equilibrium quantity increases from Q1 (400 pounds) at E1 to Q2 (600 pounds) at E2, while the equilibrium price falls from P1 ($3/pound) to P2 ($2/pound).