Question

Supply for clothing decreased, which means that suppliers will now supply _____ clothes at each price level.

Answer 1

It will be fewer clothes at each price level

Answer 2

The second answer is true.

If the supply of clothing has decreased, it means that the clothing has become a very well-stocked. According to the law of supply and demand, the price of a good increases as the quantity of that good get fewer in face of the scarcity. In this way, suppliers will provide less clothing at each price level, becoming more and more expensive until the supply returns to normal, allowing prices to fall.