Question

If, instead, two new stores that sell t-shirts open up in town, which of the following might be the new supply curve? A) Shift to the left B) Shift to the right C) No change D) Inverted curve

Answer 1

When two new stores that sell t-shirts open up in town, the new supply curve will shift to the right. This will result in a lower price and a larger quantity available.

Step-by-step explanation:

The new supply curve when two new stores that sell t-shirts open up in town would be a shift to the right (option B). When new stores open, it increases the supply of t-shirts in the market, leading to a rightward shift of the supply curve. This means that at every given price, the quantity supplied of t-shirts will be higher than before An increase in supply generally results in a lower price and a larger quantity available.

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