An increase in the number of producers of a good will

Question

Quizplus · Accepted Answer

Market supply is the sum of all individual supply curves, so an increase in the number of producers of a good will increase the market supply. Each individual producer has its own supply curve, and when you add them all up, you get the market supply curve. Therefore, an increase in the number of producers will increase the market supply, assuming that each producer has a positive quantity supplied at each price.

An Increase in the Number of Producers of a Good