Question

In: Economics

Jackie notices everyone wearing Converse sneakers on the first day of school. Ever the fashionista, this...

Jackie notices everyone wearing Converse sneakers on the first day of school. Ever the fashionista, this will likely affect:

Multiple Choice

  • Jackie's income, as she now needs to buy Converse and will have less to spend on other goods.

  • Jackie's preferences for shoes, since she feels as though she needs them now.

  • Jackie's expectations of future prices, since the price of Converse will likely go up because they're getting so popular.

  • the prices of related goods, since other shoes will be less popular and cost less now.

Solutions

Expert Solution

A Fashionista is the person who is a devoted follower of fashion. Since Jackie finds that everyone has worn the Converse sneakers on the first day of School; being a Fashionista , It would be of keen interest of Jackie to purchase the Converse sneakers as She would definitely want to follow the fashion. Thus , It will affect the Jackie's Preference since she feels that she needs it now as a Fashionista follows the fashion.

Therefore,the Correct answer is Option B.

Other Options are incorrect because It is less likely to affect her income, her expectation of future Prices and The price of related goods as being a Fashionista, the first thing that will be affected is Preference.


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