Final answer:
The supply curve will shift outward, or to the right, if the number of suppliers in the market increases, indicating a higher quantity of goods or services supplied at each price level.
Step-by-step explanation:
If the number of suppliers in the market increases, the supply curve will shift outward, or to the right. This is because the addition of more suppliers to the market typically means an increase in the total quantity of goods or services available at each price level.
Shifts in the supply curve can be triggered by factors such as technological improvements, reductions in production costs, or an increase in the number of producers, all of which increase the overall market supply.
Notably, an increase in costs would cause an upward or leftward shift, leading to smaller quantities supplied at any given price, whereas an increase in the number of suppliers works in the opposite direction.
Conversely, if there is a technological advancement that leads to reduced production costs, the supply curve will also shift to the right due to increased supply at each price level. However, an increase in costs, such as fines for carbon emissions or legal suits for polluting, would typically shift the supply curve leftward.
As for the impact on the equilibrium price, when supply increases (curve shifts right), the equilibrium price would generally fall, assuming demand remains constant. If supply decreases (curve shifts left), the equilibrium price is expected to rise.
Therefore, c. Shift Outward is correct answer.