What happens to the equilibrium price when supply goes down?
Split and merge into it. Answer by William Mallya. When supply goes down the equilibrium price tend also to fall causing the price of commodities to fall and hence shortage of goods and services to the economy.f there is an increase in supply, the supply curve will be shifted to the right. This leads to a decrease in the equilibrium price and an increase in equilibrium quantity. T â¦ his is easy to see if you draw it out.