The price of cotton rises.What happens in the market for cotton shirts?

Name: The price of cotton rises.What happens in the market for cotton shirts?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The rise in the price of cotton will lead to an increase in the cost of producing cotton shirts. This increase in production costs will cause a decrease in the supply of cotton shirts, shifting the supply curve to the left. As a result, the equilibrium price for cotton shirts will rise while the equilibrium quantity will fall.

The Price of Cotton Rises