Question

Consider the u.s. market for ice skatesice skates. supposesuppose ice skating becomesice skating becomes lessless popularpopular. explain the effect of this event on the quantity of ice skatesice skates demanded and on the demand for ice skatesice skates.

Answer 1

Answer: Quantity of ice skates demanded will fall

Explanation:

When ice skating becomes less popular, the demand for ice skates in the U.S market will decline. Since, this is a change in preference and not in price of ice skates, the demand curve will shift to the right (Change in demand (shift) not change in quantity demanded(movement along the same demand curve).  

So, the demand curve for ice skates will shift to the left leading to a fall in the price of ice skates and the quantity of ice skates demanded.

Quantity of ice skates demanded will fall, but it is due to the leftward shift in the demand curve.