Many Consumer Items Eventually Go Out of Style,and Because Fewer

question 8

Multiple Choice

Many consumer items eventually go out of style,and because fewer people want these items,demand for them drops.When this happens,we usually see production of these items stop.What happens to the equilibrium price and equilibrium quantity in a market like this?

• A) The equilibrium price goes up and equilibrium quantity goes up.
• B) The equilibrium price is indeterminate and equilibrium quantity goes up.
• C) The equilibrium price goes down and equilibrium quantity is indeterminate.
• D) The equilibrium price is indeterminate and equilibrium quantity goes down.
• E) The equilibrium price goes up and equilibrium quantity is indeterminate.

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Definitions:

Referent Power

A form of influence that stems from the charismatic qualities or the respect and admiration one commands from others.

Expert

An individual possessing a high level of knowledge, skill, or expertise in a particular field or subject matter.

Rewards

Benefits, incentives, or compensation provided to encourage specific behaviors or achievements.

Respected

Held in high esteem or regard by others due to one's qualities or achievements.