An artisan sells handmade journals. His products are successful. Based on the chart, what will happen next? (4 points)
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If the handmade journals are successful, it means that consumers demand this product in the market and that the demand continues evolving in an upward trend. The larger the demand, the more scarce the product is with respect to the number of people that desires it, and therefore it price rises.
The chart shows a supply function.
According to the law of supply, the higher the market price of product, the higher the amount of journals that the producer is willing to supply. If the price continues increasing, so will do the total output, sales and profits of the artisan.