Originally Posted by sentythee
Phuc's third set is actually incorrect. If the only reason for the increase in supply is the increase in price, then the new sellers will flee the market just as quickly as they entered when the price goes back down. This would cause the price to increase again, which means the new low price was never an equilibrium.
when the new sellers enter, the price goes back down to long run equilibrium
which is what the 3rd graph is showing
if what u suggest happens (supply decreases, causing price to increase again)
new sellers enter the market again, bringing the price to back to long-run equilibrium
if you'd like to see some links explaining this concept, just say so