Answered

2. The price of a popular toy car has gone up from [tex]$25 to $[/tex]50. What effect would this have on the supply of the toy car?

A. The quantity demanded will increase.
B. The quantity supplied will decrease.
C. The quantity demanded will decrease.
D. The quantity supplied will increase.



Answer :

GinnyAnswer

Final answer:

An increase in the price of the toy car indicates a decrease in its supply, leading to a decrease in the quantity supplied.


Explanation:

When the price of a popular toy car increases from [tex]$25 to $[/tex]50, it indicates a decrease in supply. This decrease in supply means that at every given price, the quantity supplied is lower, leading to a leftward shift of the supply curve. As a result, the quantity supplied will decrease, not increase, in this scenario.


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