An increase in the number of producers will:

Question

Quizplus · Accepted Answer

Market supply is the sum of all individual supply curves, so an increase in the number of producers will increase the market supply. This is because each new producer adds their own supply curve to the overall market supply. The other options are incorrect because an increase in the number of producers may not necessarily result in a rise in price (A), may not require an increase in market demand (B), and does not require each supplier to have an identical supply curve (D).

An Increase in the Number of Producers Will