An Increase in the Number of Producers Within an Industry

question 11

Multiple Choice

An increase in the number of producers within an industry will cause:

• A) A movement upwards along the supply curve.
• B) The supply curve to shift to the right.
• C) A movement downwards along the supply curve.
• D) The supply curve to shift to the left.

---

Definitions:

Quantity Demanded

Quantity demanded refers to the amount of a good or service consumers are willing and able to purchase at a given price.

Income

The financial gains, typically recurring, from employment or returns on investments.

Normal Good

A type of good for which demand increases as the income of consumers increases, reflecting a direct relationship between income and demand.

Complements

Goods or services that are used together, where the use or consumption of one enhances the value or demand of the other.