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These changes would MOST LIKELY have which impact on the market? A) Supply would increase B) Supply would decrease C) Demand would increase D) Demand would decrease

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The correct answer is B) supply would decrease.

The change that would most impact the market is that supply would decrease.

Given the following conditions, cost of inputs increases and the number of sellers decreases, the consequence would be that supply decrease. The reason behind this is that the price of the inputs is rising and cost more. This impacts directly to the sellers that won’t be able to sell more products or won’t be interested in the product. Then there is going to be fewer sellers that offer the product and because of that, supply will diminish.

User Kecman
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