Suppose the wearing of fur hats becomes more fashionable.What would be expected regarding the price and quantity of fur hats?

Question

Quizplus · Accepted Answer

If the wearing of fur hats becomes more fashionable, it is expected that the demand for fur hats will increase. This would lead to an increase in the price of fur hats (as the demand curve shifts to the right). At the same time, suppliers are likely to respond to the increase in demand by producing more fur hats, which would result in an increase in the quantity supplied (as the supply curve shifts to the right). Therefore, both price and quantity are expected to increase.

Suppose the Wearing of Fur Hats Becomes More Fashionable