Task 5 Assignment Microeconomics

The professor have a comment I think your topic is great. Please be sure to focus most of your efforts upon microeconomic issues with regard to interest rates (consumer and business decisions) as opposed to the Federal Reserve making changes to interest rates based upon macroeconomic statistics/trends.

SAMPLE SOLUTION

The world of business continues to be very competitive both locally and globally. Therefore, organizations must take critical decisions to ensure that they have a competitive edge over other players in the industry. The apparel and fashion sector is one industry that is thriving, thanks to the continued demand. However, this sector often has to contend with notable issues that affect consumer and business decisions. The focus of this topic will be how increase in interest rates will affect the fashion sector. The hypothesis is that an increase in the interest rates on raw materials will increase the prices of products in the fashion industry and also reduce the demand.
The Opportunity Cost in the Fashion Sector
The principle of opportunity cost is a principle of economics which argues that for every choice made, there is an opportunity cost such that the cost of one item can be regarded as the lost opportunity to purchase an alternative item. The cost of goods is often…