When new firms enter the perfectly competitive Miami bagel market,the market

Name: When new firms enter the perfectly competitive Miami bagel market,the market
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When new firms enter the market, the supply of bagels increases, which shifts the supply curve to the right. This results in a decrease in the equilibrium price and an increase in the equilibrium quantity of bagels sold. Therefore, the correct answer is D) supply curve shifts rightward.

When New Firms Enter the Perfectly Competitive Miami Bagel Market,the