5. In the market for blue jeans, indicate whether each of the following would re

Question

5. In the market for blue jeans, indicate whether each of the following would result in an increase or decrease in supply of jeans, or an increase or decrease in the quantity supplied of blue jeans.
a. More blue jean manufacturers start businesses making blue jeans--------------
b. Cotton, a key ingredient in blue jeans, becomes more expensive--------
c. The market price of blue jeans increases sharply---------

Be sure to note whether it is an increase or decrease and whether it is a change in supply or quantity supplied.

Explanation / Answer

a. More blue jean manufacturers start businesses making blue jeans
Entire supply curve shifts to right, so supply increases

b. Cotton, a key ingredient in blue jeans, becomes more expensive
Entire supply curve shifts to left, so supply decreases
c. The market price of blue jeans increases sharply This is movement along the supply curve, so quantity supplied increases

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