An economist is analyzing the American moped market for BMW. The main competition, Vespa, recently dropped their listing price by 20%. When creating a demand curve, arrows are used to indicate the direction of the demand curve shift. Which is the correct direction the arrows should be drawn for the American BMW moped market, and which line is the old demand and new demand curve?
a. The arrows should be drawn pointing rightwards. The curve on the right represents the new demand and the curve on the left old demand.
b. The arrows should be drawn pointing leftwards. The curve on the left represents the old demand and the curve on the right the new demand.
c. The arrows should be drawn pointing leftwards. The curve on the right represents the old demand and the curve on the left new demand.
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An economist is analyzing the American moped market for BMW. The main competition, Vespa, recently d...
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