Roger currently runs a restaurant on a busy street filled with many other restaurants. The local health inspector, however, has plans to shut down many of these restaurants. What impact will the closure of restaurants have?

a. There will be an increase in quantity supplied.

b. There will be a decrease in quantity supplied.
c. There will be an increase in supply.
d. There will be a decrease in supply.
e. There will be no change in quantity supplied or supply

Respuesta :

Answer:

d. There will be a decrease in supply.

Explanation:

Since the closure of restaurants reflects that decrease in supply that causes a shift in a supply curve. Due to the shut down of many restaurants, the supply curve would be a shift on leftward

And, In the given scenario, the other factors are changes except price which reflect the supply and the supply comes to take place when there is a change in other factor but the price remains constant.