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Polo (a clothes company) goes out of business. What happens to supply of clothes?

A. The S-curve shifts to the right

B. The S-curve shifts left

C. The S-curve doesn't shift. QS increases

D. The S-curve doesn't shift. QD decreases

User Thangaraja
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1 Answer

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Answer: B. The S-curve shifts left

Step-by-step explanation:

Supply curve, simply refers to the graphic representation of the relationship which is between the price of a particular product and the quantity which the supplier is willing to sell.

In this case, since Pili goes out of business, it simply means that the supply of cloth will reduce and therefore, the supply curve will shift to the left. Therefore, the correct option is B.

User JatinS
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