What will happen to the supply curve, if there was a trend of colorful shirts? a

Economics Dec 10, 2020

What will happen to the supply curve, if there was a trend of colorful shirts?

a. shift to the right

b. shift to the left

c. upward movement, along the curve

d. downward movement, along the curve

Expert Solution

The correct option is (a).

If there was a trend of colorful shirts, their demand increases which pulls the price upwards. When the price of the shirts increases, the producers get an incentive to produce more, hence, the supply of colorful shirts also increases. It is shown as a rightward shift in the supply curve.

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