A set of collectible dolls was very popular during the holiday season, but, as is the case with many toy fads, its popularity has fallen significantly in the following months. A surplus of dolls now lines the shelves of retailers across the country. In the absence of government intervention, what is likely to occur?(1 point)
Responses
a The low price brought about by a decrease in demand will incentivize producers to increase the quantity of dolls supplied to the market.
b The low price brought about by a decrease in demand will incentivize producers to decrease the quantity of dolls supplied to the market.
c The high price brought about by an increase in demand will incentivize producers to decrease the quantity of dolls supplied to the market.
d The high price brought about by an increase in demand will incentivize producers to increase the quantity of dolls supplied to the market.
1 answer
a The low price brought about by a decrease in demand will incentivize producers to increase the quantity of dolls supplied to the market.
1 answer