Again, we consider the following demand and supply relationships:
Demand: QD = 40 - P
Supply: QS = -60 + 3P
We already found that the equilibrium price and quantity for this market are:
P = 25 and
Q = 15
Now, suppose supply shifts back so that the new supply relationship is:
QS2 = -80 - 3P
We can solve for the new equilibrium:
40 - P = -80 + 3P
120 = 4P
P = 30
Q = 10
When supply shifts out, equilibrium price rises and quantity falls, just as we found graphically.