Question

Hundreds of clothing stores closed in New York City this year. The supply of clothes, at each price level , will ____

A) increase to a new equilibrium quantity
B)decrease to a new equilibrium quantity
C)stay at the current equilibrium quantity

Answer 1

Option (B)

Hundreds of clothing stores closed in New York City this year. The supply of clothes, at each price level ,decrease to a new equilibrium quantity

Step-by-step explanation:

Equilibrium quantity is defined as the state in which the quantity of supply or surplus of a particular product is constant or static i.e there is nor rise or fall in the market. Here due to the 100 shops been shut down in New York the supply decreases disturbing the equilibrium quantity of the market. Hence the amount of products being supplied is shortened so even sink the business of the producers slightly decreasing the equilibrium quantity.