Question

Colorado experiences a record snowfall during the winter season. What impact will this have on the market for snowmobiles?

a. The supply of snowmobiles will increase and the price of snowmobiles will fall.
b. The demand curve for snowmobiles will decrease and the price of snowmobiles will fall.
c. The supply of snowmobiles will increase and the price of snowmobiles will increase.
d. The demand curve for snowmobiles will increase and the price of snowmobiles will rise.

Answer 1

Answer:c. The supply of snowmobiles will increase and the price of snowmobiles will increase.

Step-by-step explanation:

When there is a record of snowfall during winter that means people are likely to want to go and do snowboarding activities which will increase the demand of snowmobiles , people are going to go in numbers taking vacations to that place .

The number of people who will be coming to enjoy all the snowboarding activities will increase which means the number of snowball machines supplied will have to increase also to accompany this number of people coming for vacations.

When mobiles are in demand people are very likely to buy them no matter what their price will be , which means it will be the right moment for the companies to increase the snowmobile prices.

Answer 2

The correct answer is option c.

Step-by-step explanation:

A record snowfall during the winter season will lead to an increase in the demand for snowmobiles to increase.

As the demand curve shifts to the right, it will intersect the supply curve at a higher point. This will cause the equilibrium point to shift upwards. As a result, both the equilibrium price and quantity demanded will increase.