As new firms enter an industry,the demand curve facing each existing firm will shift to the right.

Name: As new firms enter an industry,the demand curve facing each existing firm will shift to the right.
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Question

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When new firms enter an industry, the supply curve shifts to the right, not the demand curve. This increase in supply may lead to a decrease in price and a corresponding increase in quantity demanded, but it does not directly affect the demand curve facing each individual firm.

As New Firms Enter an Industry,the Demand Curve Facing Each