Question

two friends, alex and sam, go shopping. alex is thinking of purchasing a new shirt for $5 that has a "made in indonesia" tag on it. sam mentions how terrible working conditions are for textile workers in indonesia. sam states that "if they’d only charge $10 for their shirts, then all the sweatshop workers would be so much better off." why might sam's argument be flawed? the higher price would probably cause in , leading to a reduction in output and employment in the indonesian textile industry.

Answer 1

Answer:

The higher price would probably cause a decline in quantity demanded, leading to a reduction in output and employment in the Indonesian textile industry.

Explanation:

A higher price would cause for a decrease in quantity demanded as a result of people wanting things cheap.