ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The manufacturer would begin making fewer sneakers
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The sneaker company would raise the price of the sneakers
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People would refuse to pay more money for the sneakers
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The sneaker company would lower the price of the sneakers
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Detailed explanation-1: -What might happen if the demand for a new type of sneaker began to rise quickly. The manufacturer would begin making fewer sneakers.
Detailed explanation-2: -The global sneaker market was valued at $131.1 billion in 2021, and is projected to reach $215.6 billion by 2031, growing at a CAGR of 5.3% from 2022 to 2031.
Detailed explanation-3: -Unfavorable reviews or bad press can have the opposite effect, causing consumers to purchase less even though price stays the same. Likewise, if a particular shoe style gains or loses popularity, demand can be affected without the price being affected.
Detailed explanation-4: -If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. The same inverse relationship holds for the demand for goods and services.
Detailed explanation-5: -The Law of Demand In other words, the higher the price, the lower the level of demand. Because buyers have finite resources, their spending on a given product or commodity is limited as well, so higher prices reduce the quantity demanded. Conversely, demand rises as the product becomes more affordable.