In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.

A reduction in the number of firms producing X will?

Multiple Choice

• decrease S, increase P, and decrease Q.
• increase D, increase P, and increase Q.
• increase S, increase P, and increase Q.
• decrease S, decrease P, and increase Q.
• shift S right with no change in P and Q.