Supply Function Homework 4 2. For each of the following scenarios, use a graph to demonstrate what will happen. Indicate specifically how each change affects price, quantity supplied, arn supply. E.g. What happens in the market for PR services when an existing PR fine goes out of business? p The number of firms supplying PR services has doulined, causing a decrease in supply jleftward shift of the supply curvel. The price of PR services is unchanged At the existing price, the quantity supplied has now decreased to 2, a. A new supplier of a production input creates competition which reduces the input price