An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.
A) increases; rightward
B) increases; leftward
C) decreases; rightward
D) decreases; leftward
E) does not change; rightward

Question

Quizplus · Accepted Answer

An increase in the number of producers of bird seed would increase the supply of bird seed, meaning there is more available at each price level, resulting in a rightward shift of the supply curve. This is because with more suppliers, the market becomes more competitive, and each supplier attempts to sell more at each price level to increase their market share.

An Increase in the Number of Producers of Bird Seed