The equilibrium price of teddy bears is $5. A study comes out that says owning a teddy bear causes you to earn a lower salary. If all other factors are held constant, which of the following scenarios could happen?

Respuesta :

Answer:

c.    The price of teddy bears decreases to $4 because of a demand shift.

Explanation:

The options to this question weren't provided. Here are the options:

.    The price of teddy bears increases to $7 because of a supply shift.

b.    The price of teddy bears decreases to $4 because of a supply shift.

c.    The price of teddy bears decreases to $4 because of a demand shift.

d.    The price of teddy bears increases to $7 because of a demand shift.

e.    The price of teddy bears increases to $7 because of both a demand shift and a supply shifts

As a result of the study, people would be unwilling to buy teddy bears. As a result, demand for teddy bears would fall. This would lead to an inward shift of the demand curve. Quantity and price would fall.

I hope my answer helps you

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