Question

Hundreds of clothing stores closed in new york city this year. the supply of clothes, at each price level, will _____. increase to a new equilibrium quantity decrease to a new equilibrium quantity stay at the current equilibrium quantity

Answer 1

decrease to a new equilibrium quantity

Step-by-step explanation:

The market price of a good is determined by the interaction between supply and demand. When demand increases, price tends to increase and when demand decreases, price tends to decrease. On the supply side, when supply increases, price tends to decrease and when supply decreases, price tends to increase. All of this is justified by the law of supply and demand. Thus, if a quantity of stores closes, supply tends to decrease. Price tends to rise to the point where demand equals new supply. At this point, the equilibrium price of the trouser market will be stipulated.

Answer 2

The correct answer to this question is "decrease to a new equilibrium quantity." Hundreds of clothing stores closed in new york city this year. the supply of clothes, at each price level, will decrease to a new equilibrium quantity. Hope this helps answer your question.