Question

Explain what a sudden popularity of "Economics Professor" brand casual wear would likely do to prices of that brand. The increase in demand would lead to excess demand, which will lead to higher prices. The net result is a higher equilibrium price and quantity. The increase in demand would lead to an excess quantity demanded, which will lead to lower prices and an increase in supply. The result is a higher equilibrium quantity. The increase in demand would lead to an increase in supply and an increased quantity sold. The increase in demand would lead to excess demand, which will lead to lower prices and a higher quantity demanded.

Answer 1

In this case,the increased demand or popularity of "Economics Professor" is attributable to a non-price factor in the market which would lead to a higher overall demand and both equilibrium price and quantity.

Step-by-step explanation:

A sudden increase in demand or popularity of Economics professors imply that the overall market demand for the professors would increase reflected by a rightward shift of the demand curve of the professors in the demand-supply diagram.This would essentially lead to an increase in the equilibrium price level in the market initially,considering all other factors in the market constant.Now,due to the increase in the market price,the quantity supplied of Economics professors would increase in the market and would eventually lead to a higher equilibrium quantity in the market.In the demand-supply diagram,this scenario is reflected by the intersection of the new demand curve and the supply curve.Hence,due to increased demand or popularity of Economics professors,both equilibrium price and quantity will increase in the market.