The wages for Nike workers increases.At the same time,we see the price for Adidas shoes increase.How does this affect the market for Nike shoes?

Question

​The wages for Nike workers increases.At the same time,we see the price for Adidas shoes increase.How does this affect the market for Nike shoes?

Quizplus · Accepted Answer

The increase in wages for Nike workers could lead to an increase in the cost of production for Nike, potentially reducing the supply (supply curve shifts to the left). If Adidas shoes become more expensive, consumers might switch to Nike shoes, increasing the demand for Nike (demand curve shifts to the right).

​The Wages for Nike Workers Increases

The Wages for Nike Workers Increases