Question

The graph examines the market for graphic T-shirts.

Answer 1

The first answer is correct (A).

In economic theory, through the interaction between supply and demand one obtains the price and equilibrium quantity of a good.

The demand for a good is directly associated with consumer preference. If a released product succeeds, its demand is initially high, like the red line on the chart.

However, over time, consumers' preference for the good may decrease (like the blue line) for a number of reasons, such as the launch of a substitute good, the herd effect or a decrease in euphoria by the product, making it less popular, such as item (A) of the question.

Answer 2

The Answer Is A: A Product becomes less popular and fewer costumers purchase it. 

Hope This helps you or anybody else :)