hello
Economics book exhibit 33 page 133
the book states that new competitors will enter the industry in response to the economic profit represented in E2 will results a shift in supply curve from S0 to S1 (S1 in the right of S0) and a long run Equilibrium at E3, aslo the books states that the increased in demand on inputs will lead to the increase in their prices (the cost of production) therefore increase in the output price.
the above paragraph is very logic, but the problem lies in the graph.
as we studied in the introduction of this book the increase in the supply will lead to prices falls, which represented in the exhibit in the movement of supply curve to the right of the original curve, so the output prices declined from E2 (before new competitors) to the E3 (after new competitors) and notes that E3 is below E2.
my question is why the supply curve shifted to the right side when the prices of output increased?