Suppose that a recent,widely-circulated medical article reports new benefits of exercise.Simultaneously,the price of the parts needed to make exercise bicycles falls.What is the likely effect on the supply of and demand for exercise bicycles sold?
A) Supply shifts to the right and demand shifts to the right.
B) Supply shifts to the right and quantity demanded falls.
C) Quantity supplied falls and demand shifts to the left.
D) Quantity supplied rises and demand shifts to the left.
E) Both supply and demand are unaffected.

Question

Quizplus · Accepted Answer

The new benefits of exercise will likely increase the demand for exercise equipment, including exercise bicycles. Additionally, the decrease in the price of parts will likely lead to an increase in supply of exercise bicycles. Therefore, both the supply and demand for exercise bicycles will likely shift to the right.

Suppose That a Recent,widely-Circulated Medical Article Reports New Benefits of Exercise.Simultaneously,the