Question

eden organics provides massages, facials, and organic body treatments. last summer, another organic spa opened up in town. the supply curve for eden organics would shift in which direction?
a. to the left
b. to the right
c. along the demand curve only
d. no change would occur

Explanation:

New competitor reduces market share for Eden Organics, decreasing supply. Supply curve shifts left.

Answer:

A. To the left