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If the Number of Firms Producing Mouthwash Increases and Consumer

question 27

True/False

If the number of firms producing mouthwash increases and consumer preference for mouthwash increases, the equilibrium price of mouthwash will definitely increase.


Definitions:

Heating Oil

A low viscosity, liquid petroleum product used as a fuel for furnaces or boilers in buildings.

New Automobile

A recently manufactured vehicle intended for personal transportation, featuring the latest technology and design.

Cigarettes

Narrow cylindrical rolls of finely cut tobacco encased in paper, intended for smoking.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to offer for sale.

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