Morgan's Moped and Bicycle Store is located on the property of a fivestar resort in southern Florida. Rental cost of the mopeds and bikes is based on onehour increments. Morgan lowers his standard prices to attract patrons during daily rainstorms in June and August. This is an example of decreasing supply.

Question

Morgan's Moped and Bicycle Store is located on the property of a five­star resort in southern Florida. Rental cost of the mopeds and bikes is based on one­hour increments. Morgan lowers his standard prices to attract patrons during daily rainstorms in June and August. This is an example of decreasing supply.

Quizplus · Accepted Answer

This is an example of decreasing price, not decreasing supply. The supply remains the same, but the price is lowered to attract more customers.

Morgan's Moped and Bicycle Store Is Located on the Property