108k views
1 vote
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

6 votes

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
by
7.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories