Which scenario best illustrates the law of supply?
Answer
A
Nam wants to buy a video game. He is willing to pay $60 for a new video game if the game is very exciting. However, he is not willing to pay more than that amount. If he can find exciting used video games for $30, he is willing to buy two games.
B
Diya is making beaded bracelets to sell online. To make a profit and pay for her time, she must charge at least $10 per bracelet and make at least 10 bracelets. She is willing to spend more time making a larger number of bracelets if she can charge more per bracelet.
C
A store has 75 summer-themed T-shirts that did not sell, and now the weather is turning cold. Rather than keep the T-shirts until next summer, the store decides to lower the price from $20 to $15. After only some of the T-shirts sell, the store holds a “buy 1, get 2” sale.
D
A shortage of microchips has forced an automobile manufacturer to change features in its cars and trucks. Rather than stopping production until more microchips are available, the company is making and selling some of its vehicles without fuel-saving features that require microchips.