An increase in market price, given a fixed number of firms, causes market supply to shift to the right.

Name: An increase in market price, given a fixed number of firms, causes market supply to shift to the right.
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Question

Quizplus · Accepted Answer

An increase in market price does not cause the market supply curve to shift; it causes movement along the supply curve. A shift in supply would require a change in factors other than price, such as technology or input costs.

An Increase in Market Price, Given a Fixed Number of Firms