Answer to Question #83860 in Microeconomics for SIMRAN LAMA

Question

a. What factors have influenced the demand for motorbikes / scooty in the last few years in Kathmandu? Focus your attention on income, attitudes, and the prices of other products. Explain with graph how changes in these factors would either increase or decrease the demand for motorbikes/ scooty.

Answer 1

The main factors that have increased the demand for motorbikes / scooty in the last few years in Kathmandu are: low incomes of customers, high prices of such substitutes as cars, low development level of transportation. All these factors would increase the demand for motorbikes/ scooty in Kathmandu