FIGURE 6-5
-In Figure 6-5 above, as the number of sellers increases, the price
A)increases.
B)decreases.
C)stays the same.
D)has no relation to the number of sellers.
E)fluctuates depending on economic conditions.

Question

FIGURE 6-5 
-In Figure 6-5 above, as the number of sellers increases, the price
A)increases. 
B)decreases. 
C)stays the same. 
D)has no relation to the number of sellers. 
E)fluctuates depending on economic conditions.

Quizplus · Accepted Answer

According to the law of supply, as the number of sellers increases, the supply of goods or services also increases. This increased supply leads to greater competition among sellers, which in turn leads to lower prices. Therefore, as the number of sellers increases, the price of the product or service usually decreases.

FIGURE 6-5 -In Figure 6-5 Above, as the Number of Sellers Increases