1. In the market for motor scooters, several events occur, one at a time. Explain the influence of each event on the quantity demanded of scooters and on the demand for scooters. Illustrate the effects of each event either by a movement along the demand curve or a shift in the demand curve for scooters and say which event (or events) illustrates the law of demand in action. These events are: 

a. The price of a scooter falls. 

b. The price of a car falls. 

c. Citing rising injury rates, cities and towns ban scooters from busy streets.  

d. Scooters are a normal good and income increases. 

e. Scooters become unfashionable and the number of buyers decreases.

Answer rating: 100% (QA)

a The price of a scooter falls When the demand for goods raise due to the fall in its own price it is called as Expansion or extension of demand When ... View the full answer