Figure 3-2

-Refer to Figure 3-2.A decrease in the number of firms in the market would be represented by a movement from
A) A to B.
B) B to A.
C) S₁ to S₂.
D) S₂ to S₁.

Question

Figure 3-2
 
-Refer to Figure 3-2.A decrease in the number of firms in the market would be represented by a movement from
A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁.

Quizplus · Accepted Answer

A decrease in the number of firms in the market would lead to decreased supply, which is represented by a shift from S₂ to S₁. Therefore, the correct choice is D.

Figure 3-2 -Refer to Figure 3-2.A Decrease in the Number of Firms