The accompanying graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Place the market supply curve at the correct location on the graph. What happens to the market if a third supplier enters the Market for Stuffed Animals 10 market, holding all else constant? Market Market supply increases. OFirm 1 and Firm 2 will lower output to accommodate the new supplier in order to keep market supply 7 constant. O Market supply decreases. O The emergence of a third supplier will result in higher prices of stuffed animals. 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Quantity of Stuffed Animals Price per Stuffed Animal($) Firm 2
The accompanying graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Place the market supply curve at the correct location on the graph. What happens to the market if a third supplier enters the Market for Stuffed Animals 10 market, holding all else constant? Market Market supply increases. OFirm 1 and Firm 2 will lower output to accommodate the new supplier in order to keep market supply 7 constant. O Market supply decreases. O The emergence of a third supplier will result in higher prices of stuffed animals. 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Quantity of Stuffed Animals Price per Stuffed Animal($) Firm 2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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