Question: An article in the Wall Street Journal notes that although U.S. oil production has increased rapidly in recent years, the increase has still amounted to

An article in the Wall Street Journal notes that although U.S. oil production has increased rapidly in recent years, the increase has still amounted to only 5 percent of world production. Still, that increase has been “enough to help trigger a price collapse.” Briefly explain under what circumstances a small increase in supply can lead to a large decline in equilibrium price.

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