In the local market for coffee, if a newly opened Starbucks competes with two local coffee shops (the Java Joint and Cup O Joe), the _____ curve shifts to the _____.

Question

Quizplus · Accepted Answer

The entry of a new competitor, such as Starbucks, into the coffee market increases the total quantity of coffee available to consumers. This is represented by a shift of the supply curve to the right, indicating an increase in supply.

In the Local Market for Coffee, If a Newly Opened