Asked by Raman Hundal on Apr 28, 2024
Verified
A recent medical study reports new benefits of cycling.Simultaneously,the price of the parts needed to make bikes falls. The demand curve would _________ and the supply curve would__________
A) Shift to the right,shift to the left
B) shift to the left,shift to the right
C) shift to the left,shift to the left
D) shift to the right,shift to the right
Cycling Benefits
The advantages associated with bicycling, including improved health, reduced traffic congestion, and lower environmental impact.
Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity of the good that a supplier is willing to sell at those prices.
- Analyze the impact of external factors, such as technological advancements or resource price changes, on market supply and demand.
- Understand the economic implications of shifts in supply curves due to both natural events and economic factors.
Verified Answer
KT
KANAPATHY TAMIL CHELVAMMay 03, 2024
Final Answer :
D
Explanation :
The demand curve would shift to the right due to the reported new benefits of cycling increasing consumer interest, and the supply curve would shift to the right as the fall in the price of parts needed to make bikes would likely increase the supply of bikes due to lower production costs.
Learning Objectives
- Analyze the impact of external factors, such as technological advancements or resource price changes, on market supply and demand.
- Understand the economic implications of shifts in supply curves due to both natural events and economic factors.