Question

A clothing store has ordered a new supply of jeans for the fall season and wants to sell off the remaining items from the previous spring. What action would the store owner most likely take?

The store owner would most likely raise the price of the spring jeans to encourage producers.
The store owner would most likely lower the price of the spring jeans to encourage producers.
The store owner would most likely raise the price of the spring jeans to encourage consumers.
The store owner would most likely lower the price of the spring jeans to encourage consumers.

Answer 1

The store owner would most likely lower the price of the spring jeans to encourage consumers. Lowering price increases quantity demanded, helping sell off the remaining inventory.