Question

g You're an entrepreneur and had a great idea to sell shoes that have springs installed in them to make walking easier. However, the development costs were so high that the shoes are priced 15 times higher than shoes without springs. As a result, many of the shoes have gone unsold. What possible event could eliminate the disequilibrium in the market for shoes

Answer 1

Decrease in price of some other input of shoes, leading to reduction in shoes price.

Step-by-step explanation:

Increase in cost of production of shoes due to high setup decreases the supply, or shifts the supply curve leftwards. Analogous to - Increase in price leading to contraction in demand.

This increased cost, higher price problem can be solved by trying to reduce the cost of production & subsequently the price of shoes. It can be done by using other inputs of lower cost. So that supply curve increases to previous level & equilibrium is restored.