Question

Explain the effect of a slowdown in the supply of the widgets

Answer 1

Answer:

A slowdown in the supply of widgets would have the main effect of increasing their amount.

This would be because as a consequence of the slowdown, fewer products would be put up for sale. Thus, customers would have less access to them, with which their price would increase to filter this excess demand, as well as to equalize the productivity of sellers.

This situation would be temporary, and would return to its normal price once the usual offer of widgets is restored.