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The price of blue widgets rises to $6. Assuming that all other factors remain the same, how should the factory respond to this increase of price?

Respuesta :

Assuming that all other factors remain the same, the factory should also increase the price of their end product.
If the company does not do this, they will experience a $6 margin loss for every product that they sold. If they sold hundredth of thousands amount of products, the accumulation would be big enough to cause financial problems for the company.
marvineetesh3

The law of supply states that there is a positive relation between the price and the quantity supplied.

In a given situation, if all other factors remain the same, the factory should also raise the price of their end product and also increase the supply of more blue widgets.

What is the law of supply?

The Law of supply states that there is a positive relation between the price and the quantity supplied,  means if the prices of a particular commodity increases, the supplier will supply more of the commodity and vice versa.

As per the given situation, If the company does not do not increase the Prince, they will receive a loss of $6 margin for every product that they sold.

Therefore, Due to the law of supply, the factory should raise the supply of  blue widgets.

Learn more about Law of supply, refer:

https://brainly.com/question/5022636

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