Figure 1 shows the demand (D) and supply (S) curves for scooters.
Market equilibrium is initially at E, the intersection of D$_1$ and S$_1$.
The government announces a cut in the indirect tax on scooters and an increase in the indirect tax on bicycles, a substitute for scooters.
Which one of the following is most likely to be the new equilibrium in the market for scooters?
1 )
F
G
3 )
H
4 )
I
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