read the scenario, then answer the question. a factory produces blue and green widgets at equal production…

read the scenario, then answer the question. a factory produces blue and green widgets at equal production costs. in one day, the factory can make 20 widgets of either color. the factory has been making 10 blue and 10 green widgets per day because both sell for $5. recently, the price of blue widgets has increased from $5 each to $8 each. how should the factory respond to the increase in price of blue widgets? by decreasing the number of blue widgets produced by increasing the number of blue widgets produced by increasing the number of green widgets produced by not changing the number of blue widgets produced

read the scenario, then answer the question. a factory produces blue and green widgets at equal production costs. in one day, the factory can make 20 widgets of either color. the factory has been making 10 blue and 10 green widgets per day because both sell for $5. recently, the price of blue widgets has increased from $5 each to $8 each. how should the factory respond to the increase in price of blue widgets? by decreasing the number of blue widgets produced by increasing the number of blue widgets produced by increasing the number of green widgets produced by not changing the number of blue widgets produced

Answer

Brief Explanations:

According to the law of supply, when the price of a good increases and production costs remain the same, producers are incentivized to supply more of that good to increase profit. Here, the price of blue widgets has increased while production costs are equal for blue and green widgets.

Answer:

by increasing the number of blue widgets produced