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The graph examines the market for graphic T-shirts.

Based on the graph, which event could cause the change shown?

A) A product becomes less popular and fewer customers purchase it.
B) A product becomes more popular and more customers purchase it.
C) A product sells out of stores and customers can no longer purchase it.
D) A product is restocked on store shelves and is ready for customer purchase.

The graph examines the market for graphic T-shirts. Based on the graph, which event-example-1
User Sahil M
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2 Answers

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The first answer is correct (A).

In economic theory, through the interaction between supply and demand one obtains the price and equilibrium quantity of a good.

The demand for a good is directly associated with consumer preference. If a released product succeeds, its demand is initially high, like the red line on the chart.

However, over time, consumers' preference for the good may decrease (like the blue line) for a number of reasons, such as the launch of a substitute good, the herd effect or a decrease in euphoria by the product, making it less popular, such as item (A) of the question.

User Ivan Mamontov
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The Answer Is A: A Product becomes less popular and fewer costumers purchase it.

Hope This helps you or anybody else :)
User Janman
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