Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilibrium price and quantity of exercise bikes sold?
Price of exercise bikes decreases and quantity sold remains the same.
Price of exercise bikes remains the same and quantity sold increases.
Price of exercise bikes increases and quantity sold also increases.
The change in price is ambiguous, but the quantity sold increases.