Evaluating a Bicycle Rental Model
A city's tourism board uses a simple economic model to guide its bicycle rental pricing. The model predicts that for every $1 decrease in the daily rental price, the number of bikes rented per day will increase by 20. Based on this, they lower the price from $15 to $14, expecting to rent 20 more bikes. However, they find that 30 fewer bikes were rented compared to the previous day. The weather forecast for both days was identical. Using the principle of 'holding other things constant,' identify a plausible external factor that could have changed to cause this outcome and explain your reasoning.
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Evaluating a Bicycle Rental Model
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