DO YOU AGREE/DISAGREE WITH THE RESPONSE. EXPLAIN WHY? An increase of income in Wallstreet brokers would...

DO YOU AGREE/DISAGREE WITH THE RESPONSE. EXPLAIN WHY?

An increase of income in Wallstreet brokers would shift out the demand. The increase in the price of Bow-ties would increase the demand causing the demand to shift out. In Fashion, Ties are more popular due to recent campaigns on all the major European fashion houses for the upcoming season, so the increase in demand would shift out the cause of that. Lastly, the price of ties is expected to fall in the coming month, allowing demand to increase now.

The price of Bow-ties has decreased, giving less demand for Ties. The price of dress shirts has increased, due to that causing Ties demand to decrease. The recession is happening in America causing a huge drop in income, causing demand for ties to go down. The new jobs of the future are blue collar jobs, and no longer white collar jobs in America.

Expert Solution

1.An increase of income in Wallstreet brokers would shift out the demand. -True.

Increase in income causes demand curve to shift to the right.

2.The increase in the price of Bow-ties would increase the demand causing the demand to shift out.-False. Price and quantity demand are negatively related.

3. In Fashion, Ties are more popular due to recent campaigns on all the major European fashion houses for the upcoming season, so the increase in demand would shift out the cause of that.-True

4.The price of ties is expected to fall in the coming month, allowing demand to increase now.-True.When price is expected to rise in the future,people pre-pone the consumption which raises the demand.

5.The price of Bow-ties has decreased, giving less demand for Ties. -False.Lesser price-more quantity demanded.

6.The price of dress shirts has increased, due to that causing Ties demand to decrease. -True.Dress shirts are ties are complements so people reduce consumption of both the goods.

7.The recession is happening in America causing a huge drop in income, causing demand for ties to go down-True.As income goes down purchasing power falls.Hence,demand falls.

Rahul Sunny answered 2 years ago

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