Annabelle typically drives her car to work.But she only lives one mile from work and is willing to ride her bike instead.If the price of a bike falls,what would happen in the market for cars?

Question

Quizplus · Accepted Answer

When the price of bikes falls, they become a more attractive alternative to driving for short distances like Annabelle's commute. This would lead to a decrease in the demand for cars as more people might opt for biking instead, seeing it as a cheaper and possibly healthier alternative.

Annabelle Typically Drives Her Car to Work