Question

Read the section "The Effect of Price on Number of Suppliers." What support does the reading give for the idea that the music industry frequently sees a pattern of sharp increases and decreases in supply in response to trends?

Answer 1

The effect of the demand and supply chain can be seen in the highly volatile nature of the music industry.

Explanation:

The principles are highly accurate for many industries that are given in the article  "The Effect of Price on Number of Suppliers."

This is effectively about the demand and supply chain and one can see how this applies to the people in the music industry who have to deal with these overhauls.

The industry is largely volatile and there are trends that come and go in a couple of years and with them go away whole labels and and artist.

The people who survive are the ones that adapt and do not go all in on one trend or another.

This one can even see in other business practices.