A reduction in gasoline prices caused the demand to increase The-09115
A reduction in gasoline prices caused the demand to increase. The lower prices led to an increase in demand for large cars, causing their price to rise. This statement
This multiple choice question (MCQ) is related to the book/course
vu eco402 Microeconomics.
It can also be found in
vu eco402 Final Term - Quiz No.3.
A reduction in gasoline prices caused the demand to increase. The lower prices led to an increase in demand for large cars, causing their price to rise. This statement
is essentially correct.
contains one error the lower gasoline prices would cause a reduction in demand for large cars, not an increase.
contains one error the lower gasoline prices would increase the quantity demanded by consumers, not the demand.
contains two errors the lower gasoline prices would cause the quantity demanded (rather than demand) to increase, and the lower gasoline price would reduce (rather than increase) the demand for large cars.
