question archive 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
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.