Answer:
The decrease in the price of sunscreen and fewer people buying sunscreen could be caused by a combination of factors, and it's possible that multiple factors may be at play simultaneously. Let's evaluate each option:
a) A new production process that reduces the costs of making sunscreen.
- This could lead to a decrease in the price of sunscreen, making it more affordable for consumers. If all else remains constant, this could lead to an increase in sunscreen sales, not a decrease. However, other factors may be influencing the decrease in sales.
b) A violation of the law of demand.
- The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded for that good should increase. If there is a decrease in both price and quantity demanded, it may suggest a violation of the law of demand. However, this is a theoretical concept, and in practice, various real-world factors can affect demand.
c) A new study documenting that the ingredients in sunscreen are linked to an increased risk of malignant melanoma, a dangerous form of skin cancer.
- This is a plausible explanation. If a credible study finds a link between sunscreen ingredients and health risks, it could lead to a decrease in consumer confidence and a reduction in sunscreen sales as people become concerned about their health. This would not be a violation of the law of demand but rather a shift in consumer preferences due to new information.
d) A tax on sunscreen manufacturers.
- Imposing a tax on sunscreen manufacturers would likely increase the price of sunscreen for consumers, which, if all else remains equal, could lead to a decrease in sunscreen sales. This is a direct effect of the tax policy.
In summary, while option (a) seems unlikely to be the sole cause of a decrease in sunscreen sales, options (c) and (d) are more plausible explanations, with option (c) being related to a change in consumer preferences due to health concerns and option (d) being related to a direct increase in the price of sunscreen due to taxation. It's possible that a combination of factors is at play, so it may require further analysis to determine the primary cause.
Step-by-step explanation: