You are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X, (2)the equilibrium price (P)of X and (3)the equilibrium quantity (Q)of X.
-Refer to the above.A reduction in the number of firms producing X will:

Question

Quizplus · Accepted Answer

A reduction in the number of firms producing X will decrease the supply of X, shifting the supply curve to the left. This will result in an increase in the equilibrium price of X and a decrease in the equilibrium quantity of X. Therefore, choice C is the best answer.

You Are Asked to Determine,other Things Equal,the Effects of a Given