question archive   Suppose that people decide riding scooters is no longer fun

  Suppose that people decide riding scooters is no longer fun

Subject:MarketingPrice:2.88 Bought3

 

Suppose that people decide riding scooters is no longer fun. The equilibrium price of a scooter _____ and the equilibrium quantity of scooters _____.

A. rises; increases

B. rises; decreases

C. falls; increases

D. falls; decreases

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The correct answer to the given question is option D. falls; decreases.

As people or consumers find it less interesting to ride scooters, the demand for the scooters in the market will fall. In order to encourage the demand, the suppliers will start selling the scooters at a lower price. Hence, the equilibrium price for the scooter will fall and the equilibrium quantity will also decrease as compared to the previous equilibrium quantity.