Question

Suppose you produce T-shirts, and you are charging less than the equilibrium price. By buying all of your products and demanding more, consumers are pressuring you to _____ your supply of T-shirts.

increase
decrease
keep constant

Answer 1

Increase

Step-by-step explanation:

The equilibrium price is the price at which supply equals demand. By charging a price lower than equilibrium, demand will rise as prices are lower than they should be. In this case, consumers will increase demand for T-shirts, pushing demand and, consequently, pressure to increase the amount of T-shirts produced.