Question

Using supply-and-demand diagrams, show the effect of the following events on the market for sweatshirts.

a) A hurricane in South Carolina damages the cotton crop

b) The price of leather jackets falls

c) All colleges require morning exercise in appropriate attire

d) New knitting machines are invented

Answer 1

a)This will result to increase in demand due to lower supply.

b) This contribute to people demanding on less sweatshirt as they take advantage of the price fall.

C) The sweatshirts will needed more for that case, increasing the demand.

d)