Answer:
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Answer:
D) A doubling of the price of salt led to 5 percent drop in the quantity of salt purchased.
Explanation:
Law of supply in economics says that when the price increases the supply too increases if other factors is is constant.
Therefore, among the given options the only option that is consistent with the law of supply is "A doubling of the price of salt led to a 5 percent drop in the quantity of salt purchased"
To resolve a surplus in inventory, usually a company would lower the price to increase demand. In this case, I would imagine the swimsuit firm would offer an end of the season sale to clear out leftover inventory.