Question

market for electric scooters breaking news news outlets report that a new electric scooter—with improved battery life and durability—is likely to hit the market within a year. consider the current market for electric scooters. what happens?

Explanation:

When news reports that a new, better - performing electric scooter will hit the market soon, consumers may expect a better product in the future. This leads to a decrease in the current demand for existing electric scooters as consumers may delay their purchases. The demand curve shifts to the left. With no immediate change in supply in the short - term, this results in a lower equilibrium price and quantity in the current market for electric scooters.

Answer:

The demand for current electric scooters decreases, leading to a lower equilibrium price and quantity.