If the supply of avocados increases while demand remains unchanged, what can be inferred about equilibrium?

When the supply of avocados increases while demand remains unchanged, it leads to a situation where there are more avocados available in the market. This increase in supply typically results in a surplus, where the quantity supplied exceeds the quantity demanded at the original equilibrium price.

In response to this surplus, sellers will likely lower their prices to attract more buyers. As the price decreases, the quantity demanded by consumers tends to increase because lower prices make the product more affordable. This interaction between the increase in supply and the decrease in price leads to a new equilibrium point where more avocados are bought and sold at a lower price.

Thus, the correct understanding in this scenario is that the equilibrium price will decrease due to the increased supply, and as a result, the quantity demanded will increase as consumers respond to the lower prices. This dynamic reflects the fundamental principles of supply and demand in economics.