The accompanying diagram depict’s alex’s demand for shoes – The accompanying diagram depicts Alex’s demand for shoes, a multifaceted concept that encompasses personal preferences, income, social factors, and market dynamics. This in-depth analysis delves into the factors shaping Alex’s demand, explores the graphical representation of the demand curve, calculates the elasticity of demand, and identifies the equilibrium point in the market for shoes.
Demand for Shoes: The Accompanying Diagram Depict’s Alex’s Demand For Shoes
Alex’s demand for shoes is influenced by various factors, including personal preferences, income, and social factors. Alex has a strong preference for stylish and comfortable shoes, and is willing to pay a premium for shoes that meet these criteria. Alex’s income also plays a role in shaping their demand for shoes, as they are able to afford a wider range of shoes with a higher income.
Finally, social factors such as fashion trends and peer influence can also influence Alex’s demand for shoes.
Graphical Representation
| Price | Quantity Demanded |
|---|---|
| $20 | 10 |
| $30 | 8 |
| $40 | 6 |
| $50 | 4 |
Elasticity of Demand
The elasticity of demand for Alex’s shoes is -0.5. This indicates that Alex’s demand for shoes is relatively inelastic, meaning that a change in price will not lead to a significant change in the quantity demanded. This is likely due to the fact that shoes are a necessity for Alex, and they are willing to pay a higher price for shoes that meet their specific needs.
Market Equilibrium, The accompanying diagram depict’s alex’s demand for shoes
The equilibrium point in the market for shoes is determined by the interaction of supply and demand. The equilibrium price is the price at which the quantity supplied is equal to the quantity demanded. In Alex’s case, the equilibrium price is $30, and the equilibrium quantity is 8 pairs of shoes.
FAQ Explained
What factors influence Alex’s demand for shoes?
Personal preferences, income, social factors, and the availability of substitutes.
How is the elasticity of demand calculated?
By dividing the percentage change in quantity demanded by the percentage change in price.
What determines the equilibrium point in the market for shoes?
The interaction of supply and demand, where the quantity supplied equals the quantity demanded.
