Final answer:
When the demand for shoes decreases due to a celebrity's influence, the price of shoes is likely to decrease as well, since less quantity is demanded at any price and retailers will need to clear excess stock.
Step-by-step explanation:
When a celebrity declares that shoes are not cool anymore on television, it prompts a shift in demand among consumers, who are influenced by the celebrity's opinion, leading to fewer purchases of shoes. As a result of this change in consumer behavior, less quantity of shoes is demanded at any given price. According to the law of demand, with demand decreasing, if the supply remains constant, the price of shoes will likely decrease. This is because retailers will have excess stock, creating pressure to lower prices to clear out inventory.
This is similar to the way the price of coffee would decrease if the incentive for producers to produce lessens, despite more consumers willing to buy at a lower price, potentially creating a shortage. In the case of shoes, the decreased demand, without a corresponding decrease in supply, results in a surplus of shoes. Retailers might reduce prices to encourage consumers to buy the excess supply, thereby reaching a new market equilibrium.
Additionally, it's worth understanding that opposite effects in price and demand meet natural limits. If the price of shoes drops considerably, it may eventually reach a point that encourages consumers to purchase shoes again, finding value in them even if they were previously regarded as less fashionable.