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...

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