The Diagram Below Represents the Consumer Side of the Market

question 4

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:

Labor

The engagement of human abilities, both physical and mental, in crafting goods and services.

Garden Gnomes

Decorative statues often placed in gardens, depicting mythological creatures known as gnomes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping, indicating that demand decreases as price increases.

Plaster

A building material made of lime or gypsum, water, and sand, used for coating walls and ceilings.