If the Number of fiRms in the Market Increases, the Equilibrium

question 16

True/False

If the number of firms in the market increases, the equilibrium quantity of the product decreases given that demand remains unchanged.

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Definitions:

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time frame.

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.

Trade Restrictions

Trade restrictions are government-imposed limitations on the international exchange of goods and services, such as tariffs, quotas, embargoes, or standards.

Import Tariff

A tax levied by a nation on goods imported into the country.