Please show the work process Thank you so much The market for bicycles in rural
ID: 1257688 • Letter: P
Question
Please show the work process Thank you so much
The market for bicycles in rural Indiana is described in the table below. Public spending improves bicycle lanes in rural areas. As a result, the demand for bicycles shifts to the right by 125 bicycles at every price.
Price (dollars)
a. The initial equilibrium price was $ and the initial equilibrium quantity was bicycles.
b. The new equilibrium price is $ and the new equilibrium quantity is bicycles.
Indiana Bicycle MarketPrice (dollars)
Initial Quantity of Bicycles Demanded Quantity of Bicycles Supplied New Quantity of Bicycles Demanded $200 1,000 625 1,125 225 950 700 1,075 250 900 775 1,025 275 850 850 975 300 800 925 925 325 750 1,000 875 350 700 1,075 825Explanation / Answer
a. The initial equilibrium price was $275 and the initial equilibrium quantity was 850 bicycles.
b. The new equilibrium price is $300 and the new equilibrium quantity is 925 bicycles.