explain how each of the following events changes the demand for or supply of jea
ID: 1131693 • Letter: E
Question
explain how each of the following events changes the demand for or supply of jeans Quiz: Chapter 4 Quiz This Question: 1 pt Explain how each of the following events changes the demand for or supply of jeans. A. A new technology becomes available that reduces the time it takes to manufacture a pair of jeans B. The price of the cloth (denim) used to make jeans falls. C. Jeans come back into fashion. D. The price of a pair of jeans falls. E. The wage rate paid to garment workers falls. F. More specialty shops start to sell jeans. G. The price of a denim skirt halves. H. People's incomes increase. O A. Event A increases supply and event B increases supply. 0 B. Event E increases demand and event F increases supply. ° C. Event C increases supply and event D increases demand. O D. Event B decreases supply and event G decreases demand. OE. Event G increases supply and event H increases supply.Explanation / Answer
A.
Presence of new technology and subsequent decrease in time to produce, will increase the supply and supply curve shifts to the right.
B.
Decrease in cost of raw material (denim) to produce the jeans, will increase the supply and supply curve shifts to the right.
C.
Jeans, coming back to the fashion, will increase the demand and demand curve will shift to the right.
D.
It will increase the demand, but movement will be along the demand curve.
E.
Cost of input factor (labor cost) decreases, it leads to increase the supply and supply curve shifts to the right.
F.
More specialty shops selling the jeans, will increase the supply and supply will shift to the right.
G.
Demand of denim skirt increases, though movement will be along the demand curve.
H.
Increase in income, will increase the demand of products and demand curve will shift to the right.
Correct Answer:
A
As per the above explanations, event A & B, will increase the supply and supply curve will shift to the right.
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