Suppose that the consumer side of the market for skateboards in New York is represented by the diagram below. The current price of skateboards is P_A. Each of the events described below will have some impact on the demand for skateboards. For each event, draw a diagram to illustrate the effect of the event. Be sure to explain your diagrams using pertinent economic terminology ("movement along" or "shift in"). (a) A drop in the price of skateboards.
(b) A drop in the price of kneepads.
(c) A decline in income.

Question

Suppose that the consumer side of the market for skateboards in New York is represented by the diagram below. The current price of skateboards is P_A. Each of the events described below will have some impact on the demand for skateboards. For each event, draw a diagram to illustrate the effect of the event. Be sure to explain your diagrams using pertinent economic terminology ("movement along" or "shift in").

(a) A drop in the price of skateboards.
(b) A drop in the price of kneepads.
(c) A decline in income.

Quizplus · Accepted Answer

The Answer of Suppose that the consumer side of the market for skateboards in New York is represented by the diagram below. The current price of skateboards is P_A. Each of the events described below will have some impact on the demand for skateboards. For each event, draw a diagram to illustrate the effect of the event. Be sure to explain your diagrams using pertinent economic terminology ("movement along" or "shift in"). (a) A drop in the price of skateboards. (b) A drop in the price of kneepads. (c) A decline in income.

Suppose That the Consumer Side of the Market for Skateboards