A poducts in a competitive market, is in short supply. Government, through economic reforms, makes the entry of new firms easy. Explain the impact of
A poducts in a competitive market, is in short supply. Government, through economic reforms, makes the entry of new firms easy. Explain the impact of this action on the market of this product.
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The actions of the government will lead to an increase in supply of the product since there are now more suppliers of the product in the market. Demand remaining unchanged, the equilibrium price of the product will fall.
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