Suppose that wearing baseball caps goes out of fashion for young men. Which of the following is true?

Question

Any change in demand is not due to a change in tastes and preferences.

The demand for baseball caps would increase and shift to the right.

It would affect the demand for baseball caps.

Expect no change in demand for baseball caps.

Answer 1

If wearing baseball caps goes out of fashion for young men, the correct statement is:

It would affect the demand for baseball caps.

This is because a change in fashion trends is an example of a change in tastes and preferences, which directly impacts the demand for the product. In this case, if baseball caps fall out of fashion, we would expect the demand for them to decrease, shifting the demand curve to the left.