If the Number of Automobile Manufacturers Decreases

question 22

Multiple Choice

If the number of automobile manufacturers decreases,

• A) the demand for automobiles increases.
• B) the demand for automobiles decreases.
• C) the supply of automobiles increases.
• D) the supply of automobiles decreases.

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Definitions:

Quantity Supplied

The amount of a commodity that producers are willing to sell at a particular price over a specified period.

Price Rise

An increase in the cost of goods or services over a period of time, often measured by inflation rates.

Price Elasticity

An evaluation of consumers' reaction in terms of the quantity of a good they demand when its price changes, indicating their price sensitivity.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.