Question

A store sales T-shirts at a price of $40 per shirt. None of the buyers are willing to pay this price. In 2-3 sentences describe the signal that the buyers are sending the seller about the price of the T-shirt.

Answer 1

Supply and demand. Its not in a state of equilibrium. The price should go down, therefore more consumers will buy. But since there’s so many different shirts and prices, they aren’t willing to pay