Suppose That the Equilibrium Price of T-Shirts Increases and the Equilibrium

question 79

Multiple Choice

Suppose that the equilibrium price of T-shirts increases and the equilibrium quantity of T-shirts decreases. This is best explained by:

• A)an increase in the demand for T-shirts.
• B)a decrease in the supply of T-shirts.
• C)an increase in the supply of T-shirts.
• D)a decrease in the demand for T-shirts.

---

Definitions:

Technological

Pertaining to technology, the branch of knowledge dealing with engineering or applied sciences.

North American Free Trade Agreement

A trade agreement between Canada, Mexico, and the United States designed to reduce tariff barriers and increase economic cooperation.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries and regulate trade.

Trade Embargoes

Government-imposed restrictions on the exchange of goods and services with a particular country or group of countries.