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

Quizplus · Accepted Answer

According to the law of supply, an increase in the number of firms producing a good will lead to an increase in the quantity supplied at every price level. This will cause the supply curve to shift to the right, from S₁ to S₂. Therefore, option A is the correct choice.

Figure 43 Shows the Supply Curves for Baby Formula