I definitely think that the instinct in increased supply = lower prices is a good starting point. But, there's some danger in overly simple economic thinking,

I definitely think that the instinct in increased supply = lower prices is a good starting point. But, there's some danger in overly simple economic thinking, especially when we talk about labour markets. For example, you would think that around a hub of science & engineering universities* there would be an oversupply of engineers. Someplace where there aren't many engineering schools would be the place with the highest salaries. That's clearly not the case. Demand for some professions (like doctors) is fairly fixed. For other things it appears to spring up around supply. *This assumes that the universities are not themselves a market reaction.