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VladimirAG [237]
3 years ago
5

When an industry shrinks:

Social Studies
1 answer:
goldfiish [28.3K]3 years ago
4 0

Answer:

D. Prices rise as the supply curve shifts left.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

Industry shrinkage refers to a situation in which the goods and services manufactured (provided) by a company falls significantly due to some factors.

Hence, when an industry shrinks prices rise as the supply curve shifts left because the level of output or production (number of goods and services) reduces.

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