as3 yaon cotton

as3 yaon cotton - Name: Bao Dang ID: 16-867- 4989 Economics...

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Name: Bao Dang ID: 16-867- 4989 Economics and Fashion Trend For whoever obsesses with fashion trend, rayon clothes will be the trend for next seasons instead of cotton clothes because fashion designers are highly motivated to design clothes using rayon, a low-cost fabric that substitutes for high-cost cotton. Fashion trend is predictable using the law of demand to know which fabric will be preferred for the next seasons. Rising cotton prices leads to the use of a substitute, rayon. When cotton prices are more relatively expensive, fashion designers have an incentive to find other fabrics that are now relatively less expensive to substitute in providing satisfaction. Substitution is easily understood when fashion designers or demanders wouldn’t want to pay more to purchase the same amount of cotton, when their available amount of money doesn’t change. Instead of buying cotton at the price of $4.00 for a yard, clothing manufactures will buy rayon at a cheaper price of $2.35. Therefore, the consumption of cotton declines when the consumption of rayon increases. The
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This note was uploaded on 10/16/2011 for the course ECON 110 taught by Professor Vernon during the Fall '07 term at BYU.

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as3 yaon cotton - Name: Bao Dang ID: 16-867- 4989 Economics...

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