So the stimulus presents a paradox where sales (as measured by the value of the clothes sold) has increased one year an then Fabrico closed a store the very next year due to low demand. How can sales be up but demand fall sharply the next year? C presents a situation in which a huge increase in the price of raw materials spikes and the clothing prices spike too. (for instance, a $5 t shirt is now being sold for $15. Maybe Fabrico sold 2 t shirts and now people are only buying 1 but because the success is being measured by the value of the clothing, 1987 was a good year). It then follows that it would be unsustainable for customers to keep buying now-expensive clothes in 1988 and Fabrico would close a factory.
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