Question

You charge a price of $5 for a pair of earrings and produce 100 pairs. At this price, consumers demand 200 pairs of earrings. This is a signal for you to _____

Answer 1

The answer is to raise the price.

If you were to lower the price and/or make fewer earrings, there will be even more demand from the consumers.

Answer 2

raise the price of your earrings