1. In the market for motor scooters, several events occur, one at a time. Explain the influence of each event...
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.