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:

Bottleneck

A stage in a process that reduces the overall capacity because it runs at the slowest speed.

Contribution Margin

The excess of sales over variable costs.

Bottleneck Hour

Bottleneck Hour refers to the specific time period during which the flow of operations or processes is significantly slowed down due to limitations in capacity.

Bottleneck

A stage in a process that reduces the efficiency of the overall system due to limited capacity or resource.