What Would Happen to the Equilibrium Price and Quantity of Shirts

question 23

Multiple Choice

What would happen to the equilibrium price and quantity of shirts if the price of cotton decreases and all else is held constant?

• A) The price falls and the quantity rises.
• B) The price rises and the quantity falls.
• C) The price falls and the quantity falls.
• D) The price rises and the quantity rises.
• E) The price falls and the quantity remains constant.

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Definitions:

Sue

To initiate legal proceedings against a person or entity in order to seek a remedy or resolution for a grievance.

Assignment

A task or piece of work allocated to someone as part of a job or course of study.

Settlement

An agreement reached between parties in a dispute, typically without admission of guilt or fault, to resolve the matter without further legal action.

Debt

Money owed by one party to another under the condition that it will be paid back, often with interest.