If the Number of Sellers Decreases, Then the Supply Curve

question 22

Multiple Choice

If the number of sellers decreases, then the supply curve

• A)does not shift; does not change but there is a decrease in the quantity supplied
• B)shifts rightward; increases
• C)shifts leftward; decreases
• D)shifts leftward; increases
• E)shifts rightward; decreases

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Definitions:

Historical Cost

The original monetary value of an asset or transaction, without adjusting for inflation or market valuation changes.

Merchandise Inventory

The total cost of all the goods a company intends to sell, including items purchased for resale.

Service Capacity

The maximum level of service that can be provided by a company or infrastructure before needing expansion or upgrades.

Current Cost

The cost to replace an asset or inventory at current market prices, differing from historical cost which is the original cost at the time of purchase.