Question

Suppose you are a T-shirt producer in a market without price controls. You are charging a price that is below the equilibrium price for T-shirts. Market pressures will eventually _____ the price of your T-shirts.

lower
raise
not change

Answer 1

B) raise
so they can compete with u

Answer 2

raise

Step-by-step explanation:

A market without price control is a competitive market. Price in this type of market is defined by the interaction between supply and demand. If the price is below equilibrium price, demand will increase more than its supply capacity. Then you will have to raise your price to cool down demand according to your supply capacity.