Question

Consider each of the following scenarios. For each, would it cause a shift in demand, a shift in supply, or neither a shift in demand nor a shift in supply?.

Answer 1

If Adidas lowers its price, there would be a shift to a shift in demand to the left.

An increase in the wages of labor would lead to a shift in supply to the left.

As a result of the report, there would be a shift in demand to the right.

The arrest of the celebrity will neither shift demand or supply.

A decrease in the price of Adidas' shoes will neither shift demand or supply.

What cause a change in demand?

• A change in consumers' expectation : when there is a favourable change in this factor, the demand curve would shift to the right. When the change is unfavourable, there would be a shift to the left.

• A change in the taste of consumers : when there is a favourable change in this factor, the demand curve would shift to the right. When the change is unfavourable, there would be a shift to the left.

• A change in consumer's income: : when there is a favourable change in this factor, the demand curve would shift to the right. When the change is unfavourable, there would be a shift to the left.

• A change in the price of substitute goods: when the price of the substitute good increases, the demand for the good would increase. The opposite is the case when the price of the substitute good decreases.

Here is the complete question:

Nike is wondering how Adidas's decision to lower its prices will affect Nike.

2. Apple, which makes the iPhone, is forced to pay its workers higher wages.

3. A new report indicates that eating hot dogs can prevent cancer.

4. Adidas decides to lower the prices of its shoes.

5. A celebrity who endorses Subway is arrested.

For more information about the change in demand, please check: brainly.com/question/25871620