Changes in the size of an industry may cause supply to shift.

Question

Quizplus · Accepted Answer

When the size of an industry changes, it can affect the production and availability of goods or services. This can cause a shift in supply if the industry expands or contracts. For example, if there is an increase in demand for a particular product, the industry may need to increase production, resulting in a shift in supply to meet the demand. Conversely, if there is a decrease in demand, the industry may need to decrease production, resulting in a shift in supply to adjust to the lower demand.

Changes in the Size of an Industry May Cause Supply