Answer to Question #83875 in Microeconomics for Krisha

Question

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, poorly developed infrastructure and transportation. All these factors would increase the demand for motorbikes/ scooty in Kathmandu.