In the following question 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.
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.

In the Following Question You Are Asked to Determine, Other