Which situation best illustrates an effect of the law of supply?
A. A car company increases sales when incomes rise in a city.
B. A food truck shuts down after a better food truck opens nearby.
C. A factory stops making a brand of phone after the phone's price
decreases.
D. A theme park gains customers after it lowers its ticket prices.
The answer is : C According to the law of supply , the higher the price the larger in quantity produced. So when the phone’s price decreased the quantity produced decreased that’s why the factory stopped. I hope this helps...
