Which of the Following Will Increase the Demand for Motorcycles

question 78

Multiple Choice

Which of the following will increase the demand for motorcycles?

• A) A fall in the price of motorcycles.
• B) A fall in insurance rates for motorcycles.
• C) A fall in the price of automobiles.
• D) A fall in buyers' incomes (assuming motorcycles are a normal good).
• E) A fall in consumer preference for motorcycles.

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Definitions:

Consolidation

The process of combining multiple accounts or businesses into a single aggregation for reporting and analysis purposes, or the decrease in a stock's price volatility and the formation of a clear resistance or support level after a significant price movement.

Cyclical Industries

Industries whose performance is heavily influenced by the economic cycle, experiencing higher sales during economic booms and lower sales during recessions.

Sell Government Bonds

The act of disposing of government debt securities in the financial market.

Monetary Authorities

The institutions responsible for regulating a country's money supply and exchange rates, typically a central bank or currency board.