The Diagram Below Represents the Consumer Side of the Market

question 25

Essay

The diagram below represents the consumer side of the market for skateboards in New York. 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 picture to illustrate the effect of the event. Be sure to explain your pictures 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.

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Definitions:

Participant Modeling

Technique in which a model demonstrates the desired behavior in a step-by-step, gradual process while the client is encouraged to imitate the model.

Systematic Desensitization

is a behavioral therapy technique used to reduce fear or anxiety by gradually exposing the patient to the fear object or context.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Eye-Movement Desensitization

a component of EMDR therapy focusing on alleviating the distress associated with traumatic memories through guided rapid, rhythmic eye movements.