The Demand for Clothing Decreases

question 63

Multiple Choice

The demand for clothing decreases.As a result,the price of clothing falls below the minimum possible average cost of producing it.In the long run,if the clothing industry is a perfectly competitive industry,

• A) the price of clothing will fall.
• B) the supply of clothing will increase.
• C) some of the firms in the clothing industry are likely to go out of business.
• D) there will be no effect on the supply of clothing.
• E) firms will enter the clothing industry.

---

Definitions:

Gasoline Demanded

The quantity of gasoline consumers are willing and able to purchase at a given price within a specified period.

Buick Owner

An individual or entity that possesses a vehicle manufactured by the Buick division of General Motors.

Dodge Owner

An individual who owns a vehicle manufactured by Dodge, an American brand of automobiles and a division of Stellantis.

Market Demand Curve

A graphical representation that shows the quantity of a good that all consumers are willing to purchase at various prices.