With the free entry of a new firm there will be a shift in the demand curve. How does that shift in the demand curve affect the equilibrium price? Option 1: Equilibrium price will rise Option 2: Equilibrium price will fall Option 3: Equilibrium price will remain unchanged Option 4: Equilibrium price will fall and then rise

The answer is 'Equilibrium price will remain unchanged'. View full solution:

CUET Economics - With the free entry of a new firm there will be a shift in the demand curve. How does that shift in the demand curve affect the equilibrium price? | PYQs + Solutions

CUET Economics 2026 11th May Shift 2

Micro

Medium

Equilibrium price will rise

Equilibrium price will fall

Equilibrium price will remain unchanged

Equilibrium price will fall and then rise

✅ Correct Option: 3