Marian's Moped and Bicycle Store is located on the property of a five-star resort in Alberta. The mopeds and bikes are rented based on one-hour increments. Marian lowers her standard prices to attract patrons during daily rainstorms in June and August. This is an example of decreasing supply.

Question

Quizplus · Accepted Answer

This is an example of decreasing demand because Marian is lowering prices to attract more customers during a period of low demand (rainstorms). Decreasing supply would mean Marian is offering fewer mopeds and bikes for rent, which is not the case in this scenario.

Marian's Moped and Bicycle Store Is Located on the Property