An Increase in the Number of Producers of Gruel ________

question 476

Multiple Choice

An increase in the number of producers of gruel ________ the supply of gruel and shifts the supply curve of gruel ________.

• A) increases; rightward
• B) increases; leftward
• C) decreases; rightward
• D) decreases; leftward

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Definitions:

Price Setter

A business or entity that has the ability to influence or determine the price of goods or services in the market, often due to a lack of competition.

Elasticities Differ

The principle that different goods or services have varying sensitivities to changes in price or income.

Inelastic Demand

A situation in which the demand for a product does not change significantly when the price of the product changes.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning a small price change can cause a large change in quantity demanded.