Question

question 2. the article explained that inflation has caused shoppers to decrease their spending on luxury products such as designer handbags. a) if a decrease in consumer spending for designer handbags is due to an increase in the price of designer handbags, should this be described as a decrease in the quantity demanded or a decrease in the demand for designer handbags? briefly explain your answer.

Answer 1

Yes, the term should  "reduction in the quantity required" or "drop in the demand for designer handbags" be used in the event where a decline in consumer spending on designer handbags is the price of designer handbags.

There have been numerous arguments over whether the greater inflation that the United States has witnessed thus far is temporary or sustainable, what that implies for inflation expectations around the world, and how that affects a company's capacity to pass on higher expenses.

As bottom-up investors, we conduct in-depth fundamental analyses of specific businesses and sectors. We don't search for investing ideas based purely on directional or macro bets. Our macro views may be well-informed about the political, economic, or fiscal market dynamics of the nations in which we invest, but we take care to avoid letting them overly impact the portfolio.

Nevertheless, we believe that our international portfolio is well positioned for rising inflation because we favor businesses with real pricing power—businesses that enjoy strong demand for their extremely sought-after products, making them more resistant to sustained global inflation, should that turn out to be the case.

Learn more about investors here

brainly.com/question/14283683

#SPJ4