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When a New Firm Enters a Competitive Price-Searcher Market, the Demand

Question 167

Multiple Choice

When a new firm enters a competitive price-searcher market, the demand curves faced by all existing firms in that market will


A) shift to the left.
B) shift to the right.
C) shift in a direction that is unpredictable without further information.
D) remain unchanged. It is the supply curve that will shift.

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