If a firm can supply more at lower prices, what is the expected outcome?

When a firm can supply more at lower prices, the expected outcome is greater sales. This phenomenon aligns with the basic principles of supply and demand. When the price of a good or service decreases, it generally becomes more attractive to consumers. As a result, the quantity demanded increases, leading to greater sales for the firm.

Lower prices may encourage both existing customers to buy more and new customers to enter the market, expanding the potential customer base. Moreover, this increase in sales volume can help the firm achieve economies of scale, potentially further reducing costs and increasing profitability.

This outcome demonstrates a fundamental aspect of market economics, where price reductions, driven by increased supply, usually stimulate higher demand and bolster sales figures.