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18 votes
18 votes
Which of these would result in a decrease in the quantity of snowboards demanded?

A) An increase in the price of lift tickets
B) A rise in the price of snowboards
C) Rising popularity of skis
D) The end of winter

User Manuel Lopera
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1 Answer

13 votes
13 votes

Final answer:

An increase in the price of snowboards would lead to a decrease in the quantity demanded, as people are less likely to purchase them at a higher price. In the financial market, a rise in demand or supply for loans increases the quantity of loans, while a fall in demand or a rise in supply leads to lower interest rates.

Step-by-step explanation:

The question asks which scenario would result in a decrease in the quantity of snowboards demanded. The correct answer is B) A rise in the price of snowboards. According to the law of demand in economics, when the price of a good rises, the quantity demanded of that good typically falls, ceteris paribus (all other factors being equal). Therefore, if the price of snowboards increases, fewer people are likely to purchase them, leading to a decrease in the quantity demanded.

Discussing the financial market, an increase in the quantity of loans made and received would result from a rise in demand for loans or a rise in supply of loanable funds. Conversely, a decline in interest rates would likely occur if there is a fall in demand for loans or a rise in supply of loanable funds.

User Dotconnor
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3.2k points