Figure 3.7
-Refer to Figure 3.7.Assume that the graphs in this figure represent the demand and supply curves for children's clothing.Which panel best describes what happens in this market when the wages of seamstresses rise?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Question

Figure 3.7 
-Refer to Figure 3.7.Assume that the graphs in this figure represent the demand and supply curves for children's clothing.Which panel best describes what happens in this market when the wages of seamstresses rise?
A)Panel (a) 
B)Panel (b) 
C)Panel (c) 
D)Panel (d)

Quizplus · Accepted Answer

Panel (b) shows an increase in the cost of producing children's clothing due to the rise in wages of seamstresses. This increase in cost shifts the supply curve to the left, resulting in a higher equilibrium price and a lower equilibrium quantity.

Figure 3.7 -Refer to Figure 3.7.Assume That the Graphs in This Figure