Assuming that demand is unchanged, an increase in the number of competing ﬁrms in the market will _____.
A) lead to an increase in the equilibrium price
B) lead to an increase in the equilibrium quantity
C) shift the supply curve to the left
D) make the supply curve more elastic

Question

Quizplus · Accepted Answer

An increase in the number of competing firms in the market, assuming demand is unchanged, typically leads to an increase in the total supply of the product. This increase in supply, with demand constant, usually results in a higher equilibrium quantity as the market adjusts to the new level of supply.

Assuming That Demand Is Unchanged, an Increase in the Number