As the number of firms in a market increases, the supply curve will shift to the right and the equilibrium quantity will rise.

Question

Quizplus · Accepted Answer

With more firms entering the market, the overall supply of goods or services will increase, causing the supply curve to shift to the right. As a result, the equilibrium quantity will rise to a new equilibrium point where the supply and demand curves intersect.

As the Number of Firms in a Market Increases, the Supply