Answer to Question #65621 in Microeconomics for Bhuwan Bhatt

Question

For the questions below, write what effect the listed scenarios has on the demand of the product and why.
1. Winter coat: unusually mild winter
2. Winter coat: relocate to Nepal
3. Winter coat: rock star makes it trendy to wear winter coats
4. Shorts: schools ban wearing shorts
5. Shorts: famous people wear shorts in public
6. Ski sweater: Skiing becomes more popular
7. Ski sweater: Ski sweaters are out

Answer 1

1. Demand will decrease because people don’t need winter coat in mild winter
2. In high mountain areas temperature is low , so the demand of winter coat will increase
3. Demand will increase because of fashion trend
4. Demand will decrease because pupils can’t wear shorts to school anymore
5. Demand will increase because of fashion trend
6. Demand will increase because more people want to have it
7. Demand will decrease