Explain how the following factors will shift the demand curve for Gillette shaving cream
a. The price of a competitor's shaving cream increases.
b. With an increase in unemployment, the average level of income in the economy falls.
c. Shaving gels and foams, marketed as being better than shaving creams, are introduced in the market.
a. Since Gillette and other shaving creams are substitutes, an increase in the price of a competitor's shaving cream should lead to an increase in the demand for Gillette shaving cream. This means that the demand curve for Gillette shaving cream will shift to the right.
b. With a fall in the average income level, the demand for shaving cream is likely to fall. The demand curve for Gillette shaving cream will shift to the left.
c. Shaving gels and foams would be considered substitutes for shaving cream. The demand curve for Gillette shaving cream will shift to the left.
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a. technological change and/or population growth exogenous. b. technological change exogenous and population growth endogenous. c. population growth and/or technological change endogenous. d. population growth exogenous and technological change endogenous.
According to the shortrun (specificfactors) model, how will FDI affect wages in the recipient nation?
a. They will rise. b. They will fall. c. They will not affect wages. d. They will fall in comparison to wages in the sending country.
Government spending is funded by a system of
A. taxation and borrowing. B. checks and balances. C. policies and laws. D. states and cities.
Based on the 'early incarnation' of the Phillips curve, explain what effect a decrease in the unemployment rate will have on the inflation rate
What will be an ideal response?