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