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If the price of t-shirts rises from $12.00 to $13.00, what is the likely result for

quantity supplied?
The quantity supplied goes up.
The quantity supplied goes down.
The quantity supplied stays the same.

1 Answer

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Answer: The quantity supplied likely goes down.

In economics, an increase in price leads to a decrease in quantity supplied, holding all other factors constant. This relationship is known as the law of supply, which states that a higher price leads to an increase in quantity supplied and a lower price leads to a decrease in quantity supplied, ceteris paribus.

When the price of t-shirts rises from $12.00 to $13.00, the increase in price reduces the quantity of t-shirts that producers are willing and able to supply. Producers will be less incentivized to produce as many t-shirts at the higher price, so the quantity supplied goes down.

Explanation:

User YaSh Chaudhary
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