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Changes in Number of Firms or Production Capacity as Causes for Supply Curve Shifts
A shift in the market supply curve can be caused by changes in the number of firms operating in the market or by adjustments in their production capacity. An increase in the number of firms or an expansion of their capacity leads to a rightward or outward shift of the supply curve, resulting in a new equilibrium with a higher quantity and a lower price. [2, 6, 7, 8] Conversely, a decrease in firms or capacity would shift the curve inward. [4, 5]
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CORE Econ
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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