Question

'As fewer people buy gym memberships, the demand for running shoes will decrease and the price of a pair of running shoes will increase. The rise in the price of a pair of running shoes will increase the supply of running shoes". This statement is _____ because _____. a. true; the increase in the price of a pair of running shoes increases the supply of running shoes to eliminate the shortage. b. false; a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase teh supply of running shoes. c. true, when the demand for running shoes increases, the supply for running shoes increases too so that no surplus occurs d. true; when the demand for running shoes increases, the supply of running shoes increases so that the price of a pair of running shoes doe not increase e. false; the decrease in the demand for running shoes creates a surplus and to eliminate the surplus, supply increases

Answer 1

Answer: "The rise in the price of a pair of running shoes will increase the supply of running shoes".

This statement is false because a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes.

This occurs as the price of a pair of running shoes increases,therefore decreasing the demand and thus the supply will not increase.