Preston shops frequently at his favorite store,Fully Clothes.He and other like-minded consumers are willing to pay a much higher price than they would at competing stores because Fully Clothes best suits their particular preferences.Poor management causes Fully Clothes to go out of business.What is likely to happen to Fully Clothes' customers' demand curves?

Question

Quizplus · Accepted Answer

Since Fully Clothes is a store that best suits the particular preferences of Preston and other like-minded consumers, its closure is likely to result in a decrease in their willingness to pay higher prices. This would lead to a shift of the demand curve to the left, indicating a decrease in demand for similar products at different stores.

Preston Shops Frequently at His Favorite Store,Fully Clothes