A factory in London makes high-quality textiles to be used for clothing. The factory can produce better-quality cloth at a faster rate than traditional methods of hand weaving cloth. The products are in high demand, and the factory earns large profits. Within a few years, several similar factories open in the London area and make cloth of a similar quality. How might the new factories affect the business of the original factory? The factory will be able to sell more, so it will earn more. The factory will decrease its supply as the overall supply goes up. The factory will have to move to an area with less competition. The factory will increase its supply to meet greater demand.