Suppose That People Decide Riding Scooters Is No Longer Fun

question 207

Multiple Choice

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________,and the equilibrium quantity of scooters ________.

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases
• E) does not change; decreases

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Definitions:

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate.

Dividends

Financial dividends issued by a corporation to its stockholders, primarily generated from the organization's revenues.

Coupon Payments

Periodic interest payments made to bondholders during the life of the bond.

Coupon Payment

The regular interest payment that a bondholder receives from the bond's issue date until it matures.