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Explain how each of the following events changes the demand for or supply of jeans.

A. Jeans go out of fashion.
B. The price of a pair of jeans falls.
C. The wage rate for clothing manufacturers increases.

User Hann
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Final answer:

Jeans going out of fashion shifts the demand curve left due to decreased demand. A decreased price of jeans increases the quantity demanded without shifting the curve. Increasing wages for clothing manufacturers shifts the supply curve left as production costs rise.

Step-by-step explanation:

Demand and supply analyses are essential to understand how different events can impact the market for goods, specifically in this case, jeans. Let's examine three economic events and their likely influence.

A. Jeans go out of fashion

When jeans go out of fashion, consumers' tastes change, which is one of the factors that can shift the demand curve. In this case, demand for jeans would decrease, shifting the demand curve to the left. This means at any given price, fewer jeans would be purchased.

B. The price of a pair of jeans falls

If the price of jeans falls, this does not shift the demand or supply curve, but instead moves along the demand curve. Consumers will be more willing to purchase jeans at the lower price, resulting in an increase in the quantity demanded.

C. The wage rate for clothing manufacturers increases

An increase in the wage rate for clothing manufacturers means that the cost of production for making jeans goes up. This is a factor that shifts the supply curve. The supply of jeans would decrease, shifting the supply curve to the left. At any given price, fewer jeans would be supplied to the market.

It's important to analyze these changes by isolating each event and assuming ceteris paribus, or all other things being equal, to understand the individual impact on the market for jeans.

User Initialxy
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