Question

suppose that the equilibrium orice of t-shirts increases and the equilibrium quanitiy of t-shorts decreases. this is best explained by

Answer 1

Answer: Supply of T-shirts decreasing

Explanation:

If the supply of T-shirts decreases, the equilibrium quantity of t-shirts being supplied to the market will decrease as well. Assuming that demand stays the same, the leftward shift of the supply curve will intersect with the demand curve at a higher equilibrium price.

This is simply because as the t-shirts are in short supply, people will be willing to pay more to have them as they are not as widespread as before.