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The number of sellers in a market influences the overall supply of goods or services available. When more sellers enter a market, the total supply increases, causing a rightward shift in the supply curve. Conversely, if sellers exit the market, the total supply decreases, resulting in a leftward shift in the supply curve.

Several factors can impact the number of sellers in a market. For instance, low barriers to entry, such as minimal start-up costs or easy access to resources, can encourage more firms to enter the market, increasing the number of sellers. On the other hand, high barriers to entry, such as strict regulations or substantial capital requirements, may deter new firms from entering the market, reducing the number of sellers.

Additionally, changes in market conditions, technological advancements, or shifts in consumer preferences can also influence the number of sellers. Overall, the number of sellers is crucial in determining the supply curve's position and the equilibrium price and quantity in a market.

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Supply CurveNumber Of SellersMarket InfluenceRightward ShiftLeftward ShiftBarriers To EntryMarket ConditionsTechnological AdvancementsConsumer PreferencesEquilibrium PriceEquilibrium Quantity

From Chapter 3:

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3.8 : Impact of Number of Sellers on Supply Curve

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3.1 : Supply

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3.2 : Law of Supply

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3.3 : Mathematical Representation of the Supply Curve

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3.4 : Market Supply

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3.5 : Impact of Input Prices on Supply Curve

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3.6 : Impact of Technology on Supply Curve

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3.7 : Impact of Expectations of Future Prices on Supply Curve

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3.9 : Elasticity of Supply (ES)

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3.10 : Factors Affecting Elasticity of Supply

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3.11 : Elasticity of Supply Through Percentage Method

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3.12 : Degrees of Elasticity of Supply

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