Consider the supply curve for cotton shirts.An increase in the price of cotton will:
A)increase the supply of cotton shirts.
B)decrease the supply of cotton shirts.
C)increase the quantity supplied of cotton shirts.
D)decrease the demand for cotton shirts.

Question

Quizplus · Accepted Answer

An increase in the price of cotton, which is a raw material for cotton shirts, makes producing cotton shirts more expensive. This typically leads to a decrease in the supply of cotton shirts, as producers may produce less at the same price levels.

Consider the Supply Curve for Cotton Shirts