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As more sellers enter a market, what happens to the total supply in the market? What will this do to the price of the product?

Hint: Draw a supply and demand diagram to help you.

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Final answer:

When more sellers enter a market, the total supply increases, leading to a decrease in the price of the product.


Explanation:

When more sellers enter a market, the total supply increases because each firm finds it profitable to produce more at a higher price, following the law of supply. This is depicted by an upward-sloping market supply curve where an increase in price leads to an increase in quantity supplied.

As the price rises, more firms enter the market, and existing firms produce more to meet the increased demand, resulting in a higher quantity supplied. Ultimately, this tends to drive the price of the product down as the market becomes more saturated with supply.


Learn more about Supply and Demand Relationship here:

https://brainly.com/question/14397028


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