During the current pandemic, people have looked for additional opportunities for physical exercise and recreation. One particular form of physical recreation that has become increasingly popular is bicycling. In this question, we will examine the effects of the increased popularity of bicycling on the equilibrium price and quantity of bicycles.

a. Does the increased popularity of bicycling represent an increase in demand for bicycles, a decrease in demand for bicycles, an increase in supply of bicycles, or a decrease in supply of bicycles?

b. Based on your answer to part a, does the increased popularity of bicycling create shortage of bicycles or does it create surplus of bicycles?

c. Based on your answer to part b., will the equilibrium price of bicycles go up or will the equilibrium price of bicycles go down?

d. Based on your answer to pat c., will the equilibrium quantity of bicycles go up or will the equilibrium quantity of bicycles go down? Explain your answer. In particular, will your answer focus on quantity demanded or will it focus on quantity supplied?

e. Result: state the effects of the increased popularity of bicycles on the equilibrium price and quantity of bicycles.

f. Moral of the story: should you use this format for analyzing the effects of any change in demand or supply?

g. Follow up to Moral of the Story: should you analyze any future test questions involving a change in demand or supply using this format?