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Five New Sellers Enter a Market (That Previously Had Seven)

Question 117

Multiple Choice

Five new sellers enter a market (that previously had seven) and begin producing a good. Which of the following choices explains what happens to the equilibrium Q and P?


A) The demand curve will shift to the right, and the equilibrium P and Q will both rise.
B) The supply curve will shift to the right, the equilibrium P will fall, and the equilibrium Q will rise.
C) The supply curve will shift to the left, the equilibrium P will fall, and the equilibrium Q will rise.
D) The supply curve will shift to the right, the equilibrium P will rise, and the equilibrium Q will fall.

Correct Answer:

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