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Two friends, Alex and Sam, go shopping. Alex is thinking of purchasing a new shirt for $ 5 that has a ' Made in

Two friends, Alex and Sam, go shopping. Alex is thinking of purchasing a new shirt for $5 that has a "'Made in Indonesia" tagon it. Sam mentions how terrible working conditions are for textile workers in Indonesia. Sam states that if they'd only charge$10 for their shirts, then all the sweatshop workers would be so much better off.

Why might Sam's argument be flawed?

The higher price would probably causeian increase

leading to a reduction in output

and employment in the Indonesian textile industry

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