Assume declining profits in the market for Internet service force several firms in the area to drop out of the market. All else constant, this would cause the:

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02-07-2021
Business

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Assume declining profits in the market for Internet service force several firms in the area to drop out of the market. All else constant, this would cause the:

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Priatouriidn Priatouriidn · Answer 1 · 2021-07-06T20:48:22-04:00

Priatouriidn Priatouriidn

06-07-2021

Answer:

Equilibrium quantity will decrease and Price will increase.

Explanation:

The decrease in the number of firms will result in a decrease in supply or quantity in the market. As the quantity decreases, the prices tend to increase. Therefore, the drop of firms in the market will decrease the supply and increase the price.

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