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What would happen to the demand curve for a particular brand of shampoo if a famous movie actress with beautiful hair announces that it is the best shampoo she has ever used?

Sagot :

Answer:

this causes the demand curve to shift to the right from D0 to D1

Explanation:

When a famous movie actress with beautiful hair endorses a shampoo as the reason that she has such beautiful hair, this causes the demand for that product to increase drastically. This is because everyone sees this endorsement and actually believes that if they buy that shampoo they will also have beautiful hair like the actress. Therefore, demand increases and as it increases this causes the demand curve to shift to the right from D0 to D1