Figure 4.3 shows the supply curves for baby formula.In the figure given below,which of the following changes is likely to result from an increase in the number of firms producing baby formula? Figure 4.3

Question

Figure 4.3 shows the supply curves for baby formula.In the figure given below,which of the following changes is likely to result from an increase in the number of firms producing baby formula? Figure 4.3
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Quizplus · Accepted Answer

An increase in the number of firms producing baby formula would increase the supply of the product in the market. As a result, the supply curve would shift rightward, from S₁ to S₂, reflecting the increase in quantity supplied at each price level.

Figure 43 Shows the Supply Curves for Baby Formula