Homework SourseThedemandforsmallenginemotorscootersjumpedwhentheprice of ga
Thedemandforsmall-enginemotorscootersjumpedwhentheprice of gasoline started moving up in the summer of 2008. Make a predic- tion about the demand for this form of transportation, say, two years from today. Explain your answer. (Miller)
Miller, Roger L. Economics of Macro Issues, 8th Edition. Pearson, 20170620. VitalBook file.
Thedemandforsmall-enginemotorscootersjumpedwhentheprice of gasoline started moving up in the summer of 2008. Make a predic- tion about the demand for this form of transportation, say, two years from today. Explain your answer. (Miller)
Miller, Roger L. Economics of Macro Issues, 8th Edition. Pearson, 20170620. VitalBook file.
Thedemandforsmall-enginemotorscootersjumpedwhentheprice of gasoline started moving up in the summer of 2008. Make a predic- tion about the demand for this form of transportation, say, two years from today. Explain your answer. (Miller)
Miller, Roger L. Economics of Macro Issues, 8th Edition. Pearson, 20170620. VitalBook file.
Solution
With an increase in the price of gasoline, people shift their demand to those modes of transportations that consumes less fuel. With the recent surge in the US economy and rising demand for the crude oil and its price, the price of gasoline will also increase. It will also cause a big increase in the demand of small -engine based scooters. People will use this mode of transportation to save the expenses upon the gasoline. Besides, people can also opt for the transportation that uses alternative energy means such as electric engine cars. Though, it will be costly and come at a higher price. So, people will focus upon the scooters with smaller engines that consumes less gasoline.
