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

Question

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

Quizplus · Accepted Answer

As the number of sellers increases, the supply of the product in the market increases as well. With an increase in supply, prices tend to decrease due to competition among sellers trying to attract consumers with lower prices. Therefore, the correct choice is D.

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