Question: Explain whether you agree with each statement below. Explain how each event affects the equilibrium in the market for bicycles. a.The government of a city

Explain whether you agree with each statement below. Explain how each event affects the equilibrium in the market for bicycles.

a.The government of a city finalizes the construction of bike lanes. At the same time, the price of bicycle helmets (a complement to bicycles) decreases. Both events lead to an increase in the equilibrium price and a decrease in the equilibrium quantity of bicycles.

b.The price of aluminum used to make bicycles increases and the average consumer income increases leading to an increase in the equilibrium quantity and price of bicycles.

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