Question

section 1: economics
lesson 3: supply and demand
practice
a popular celebrity promotes a certain brand of clothing, and
this increases the demand for that brand of clothing. what two
things would you expect to happen next? (select two
answers.)
the price will go up.
the price will go down.
the producer will increase the supply.
the producer will decrease the supply.

Explanation:

When celebrity promotion increases demand, the demand curve shifts right. At the original price, quantity demanded exceeds quantity supplied (shortage), so price rises. Higher prices and increased demand incentivize producers to increase supply to meet demand and maximize profits.

Answer:

A. The price will go up, C. The producer will increase the supply.