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. Refer to the given information.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 lead to an increase in the equilibrium price of X, as the quantity demanded exceeds the quantity supplied. Additionally, the equilibrium quantity of X will decrease, as there is less supply available in the market.

In the Following Question You Are Asked to Determine,other Things