Business, 25.03.2020 04:35 lildee16lildee

Starting at point A on demand curve D1, determine whether the indicated event will cause demand to increase to D2 or decrease to D3, or whether there will be a movement along the demand curve D1. For each of the following events, indicate where the new point will be after the event occurs. a. Sweaters fall out of fashion: . b. There is a shortage of wool: . c. The winter is particularly long and cold this year: . d. Sweater vendors offer a sale: .

Answers: 1

Show answers

Answers

Answer from: batmanmarie2004

A. Point D

B. Point B

C. Point E

D. Point C

Explanation:

Here is the full question:

The figure below shows three monthly market demand curves for sweaters at a local clothing store.

Starting at point A on demand curve D1, determine whether the indicated event will cause demand to increase to D2 or decrease to D3, or whether there will be a movement along the demand curve D1.

The graph needed to answer this question can be found in the attached image.

The demand curve shows the relationship between price and quantity demanded.

The demand curve is guarded by the law of demand. The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Only a change in price leads to a movement along the demand curve.

Other factors that affect demand leads to either a leftward or rightward shift of the demand curve.

A leftward shift occurs if demand falls a rightward shift occurs if demand increases.

A. If sweater falls out of fashion, demand for sweaters fall and as a result, the demand curve shifts leftward. The points would shift from A to D.

B. If there's a shortage of wool, the price of sweaters rise. This makes sweaters more expensive. As a result, the quantity demanded falls. This leads to a movement upward along the demand curve. The demand curve moves from point A to B.

C. If it is very cold and winter lasts long, the demand for sweaters would increase. This would shift the demand curve to the right. The demand curve moves from point A to E.

D. If vendors offer a sale, they reduce the price of sweaters. The Quanitity demanded increases as a result. There's a movement along D1 from A to C.

I hope my answer helps you

Starting at point A on demand curve D1, determine whether the indicated event will cause demand to i

Answer from: Quest

They can use the north star to estimate their location in the ocean.

Answer from: Quest

When they plug they’re nose

Another question on Business

Business, 21.06.2019 18:20

Saeed needs money to purchase tools, basic office supplies, parts to refurbish equipment, accounting software, and legal fees. believing saeed's business will be a success, an investor invests $5,000 to saeed open his business. in return, saeed agrees to repay the investor the $5,000 plus 17 percent of the profits of the business. calculate the return on investment for the investor if saeed's business makes $7,000 in profit as a total return of the business in its first year.

Answers: 1

Answer

Business, 22.06.2019 10:30

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next

Answers: 2

Answer

Business, 22.06.2019 11:20

Which stage of group development involves members introducing themselves to each other?

Answers: 3

Answer

Business, 22.06.2019 13:30

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?

Answers: 2

Answer

You know the right answer?

Starting at point A on demand curve D1, determine whether the indicated event will cause demand to i...

Questions