A decline in the number of firms that produce pianos will lead to: a

Economics Dec 08, 2020

A decline in the number of firms that produce pianos will lead to:

a. a decrease in the quantity supplied of pianos

b. a rightward shift of the supply curve for pianos

c. a decrease in the quantity demanded of pianos

d. a leftward shift of the supply curve for pianos

Expert Solution

The correct answer is: d. a leftward shift of the supply curve for pianos

If there is a decline in the number of firms that produce pianos, this means that there will be few firms in the industry producing pianos. As a result, the number of pianos produced in the market will reduce and this will shift the supply curve for pianos to the left.

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