Suppose the price of cotton (a production input for t-shirts) falls, which causes the quantity of COC t-shirts supplied to increase by 600 units at EVERY price. (Remember, when price of an input decreases, this makes it cheaper to produce the good.) The demand and supply schedules for COC t-shirts are now as follows: Table 2-3: Demand & Supply Schedules for COC t-shirts Price ($) Quantity Demanded per Year Quantity Supplied per Year 10 2000 800 (-200+600) 20 1600 1000 (-400+600) 30 1200 1200 (-600+600) 40 800 1400 (-800+600) 50 400 1600 (-1000+600) 60 1800 (-1200+600)
Suppose the price of cotton (a production input for t-shirts) falls, which causes the quantity of COC t-shirts supplied to increase by 600 units at EVERY price. (Remember, when price of an input decreases, this makes it cheaper to produce the good.) The demand and supply schedules for COC t-shirts are now as follows: Table 2-3: Demand & Supply Schedules for COC t-shirts Price ($) Quantity Demanded per Year Quantity Supplied per Year 10 2000 800 (-200+600) 20 1600 1000 (-400+600) 30 1200 1200 (-600+600) 40 800 1400 (-800+600) 50 400 1600 (-1000+600) 60 1800 (-1200+600)
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 1WNG
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