When new firms enter a perfectly competitive market,the market supply curve shifts ________ and the price ________.

Question

Quizplus · Accepted Answer

When new firms enter a perfectly competitive market, the market supply increases and shifts the supply curve to the right, leading to a surplus of goods. This surplus then drives down the price until the market reaches a new equilibrium. Therefore, the correct answer is A) rightward; falls.

When New Firms Enter a Perfectly Competitive Market,the Market Supply