When the Number of Firms in a Market Decreases

question 72

Multiple Choice

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.

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Definitions:

Correspondent Inference

An inference about a person's disposition or character based on observed behavior, especially when the behavior is freely chosen.

Consensus Effect

The tendency for people to overestimate the extent to which others share their views, beliefs, and experiences.

Self-Perception Theory

A theory suggesting that individuals determine their attitudes and preferences by observing their own behavior and the circumstances in which it occurs.

Observing

The act of watching or monitoring something carefully in order to gain information.