Question

A store is selling t-shirts $40 per shirt.None of the buyers are willing to pay this price.In 2 or 3 sentences, describe the signal that the buyers are sending the seller about the price of the t-shirt.

Answer 1

The buyers are telling the seller that $40 per t-shirt is way too much. There are multiple stores I can name that will sell you a t-shirt for five dollars, so it just looks like a bad deal. The buyers are saying that the price needs to go down.