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Normally a household will not buy a second-hand scooter even if the price of scooter falls. How we get a downward sloping market demand curve for scooters? |
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Answer» SOLUTION :(i) We know that though an individual may not buy a second-hand SCOOTER even if the price of scooter falls but there may be some individual that could not AFFORD to buy even a second-hand scooter earlier and now with a fall in their price they can afford it now. (II) Therefore, the number of consumers of a second-hand scooter increases with a fall in their price leading to an increase in market demand at a lower price. Thus the market demand curve for SCOOTERS will be a downward sloping. |
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