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
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.
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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 full answer
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
6th edition
132831007, 978-0132831000
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