Graph 14-9

-Refer to Graph 14-9. An increase in market supply from Supply₀ to Supply₁ is most likely the result of:

Question

Graph 14-9 -Refer to Graph 14-9. An increase in market supply from Supply₀ to Supply₁ is most likely the result of:

Quizplus · Accepted Answer

An increase in market supply from Supply₀ to Supply₁ can be caused by the entrance of new firms in the market who are now adding to the overall supply. Existing firms changing their cost structure or increasing production levels beyond Q₁ could also contribute to an increase in market supply, but these options are not exclusively responsible for the shift in the supply curve depicted in Graph 14-9.

Graph 14-9 -Refer to Graph 14-9. an Increase in Market Supply from in Market