If the Number of Sellers Decreases, the

question 13

Multiple Choice

If the number of sellers decreases, the

• A)demand curve will shift to the right.
• B)supply curve will shift to the right.
• C)demand curve will shift to the left.
• D)supply curve will shift to the left.

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Definitions:

Disposable Income

represents the amount of money that households have available for spending and saving after income taxes have been accounted for.

Saving

The portion of income that is not spent on consumption but rather set aside for future use or emergencies, contributing to personal and national wealth.

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting expenses that are necessary or committed.

Induced Consumption

The portion of consumption that changes in response to changes in income, where higher income levels lead to higher consumption.