A shift in demand curve has larger effect on price and smaller effect on quantity when the number of firms is fixed compared to the situation when free entry and exit is permitted.Explain with the help of a diagram.

A similar question has already been answered by one of our experts. Follow the link to view the same.


We would advice you to not to keep on piling your questions, rather, you should keep posting 1 to 2 questions per subject (Accountancy, Economics and Business Studies) on everyday basis. Ideally, you should go through the study material that is available on our website and look for the answers to the questions. This will not only help you to enhance your analytical abilities but also will help you to learn the application of your knowledge. In this manner, you will gain confidence and will help you in evaluating your preparation.   

  • 0
What are you looking for?