In a market, only two firms operated: firm A and firm B. After a certain period of time, two more firms entered the market - Firm A and Firm B. What do you think will happen to the market supply curve?

Shifts right Shifts left Does not shift May or may not shift

Shifts right

As the number of firms changes, the market supply curve shifts as well. Specifically, if the number of firms in the market increases, the market supply curve shifts to the right and vice versa.