Question

What is the likely economic result of the following scenario? Recently there has been a rise in the number of teenage girls in the country as well as a strong increase in clothing sales. The cotton industry will bottom out because demand will outstrip supply. The cotton industry will continue to grow for years without experiencing a decline. The cotton industry will need to produce more crops next year to keep up with the demand. The cotton industry will need to produce fewer crops next year because the demand will stall.

Answer 1

I could be over simplifying this but i think it's just supply and demand

Answer 2

Answer:

The cotton industry will need to produce more crops next year to keep up with the demand.

Explanation:

The purchase and sale of cotton clothing is involved in the basic principle of the law of supply and demand. Under this law, when demand for a good or service increases, price increases and the quantity supplied tends to increase to fit demand. The opposite is also true, if demand were to fall, price would fall and supply would fall.

In this case, if there are more teenagers in the city, the demand for clothes increases. The cotton industry will have to increase its production in order for the clothing supply to keep up with growing demand.