2. Cite Evidence 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?

The reading shows that musical trends increase the demand in the music industry and stimulate the supply of this industry. However, the trends tend to be transient, providing a decrease in demand and consequently in supply, which makes the music industry highly volatile.

Explanation:

The music industry is a highly volatile economic sector with drastic changes in demand and supply, due to the frequent musical trends that are established.

When a musical trend is launched (kpop, for example), there is a large number of consumers who want this trend to be very active in the market. These consumers increase the demand for products of this trend, which makes the production large and the number of suppliers of important supplies for this production is very efficient. In this case, if the production is high, the supply is also high.

However, trends tend to disappear over time, decreasing the number of consumers. Thus, the production of products of this trend must be reduced and, consequently, the supply of this trend decreases. However, a musical trend decreases with the rise of another trend, which will drive the increase in demand and supply again.

1 a

2 c

3 c

4 b

5 a

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