Question

When the number of firms in a market decreases,

A) the demand curve shifts to the left.
B) the demand curve shifts to the right.
C) the supply curve shifts to the right.
D) the supply curve shifts to the left.
E) both the supply and the demand curves shift to the left.

Answer 1

D) the supply curve shifts to the left.

Step-by-step explanation:

When the number of firms in a market decreases, the number of suppliers reduce causing a fall in supply. A fall in supply leads to a leftward shift of the supply curve.

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