A reduction in gasoline prices caused the demand to increase The-09127
A reduction in gasoline prices caused the demand to increase. The lower prices led to an increase in demand for large cars, causing their prices to rise. These statements
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.4.
A reduction in gasoline prices caused the demand to increase. The lower prices led to an increase in demand for large cars, causing their prices to rise. These statements
are essentially correct.
contain one error; the lower gasoline prices would cause a reduction in demand for large cars, not an increase.
contain one error; the lower gasoline prices would increase the quantity of gasoline demanded by consumers, not the demand for large cars.
contain two errors; the lower gasoline prices would cause the quantity of gasoline demanded (rather than demand for large cars) to increase, and the lower gasoline price would reduce (rather than increase) the demand for large cars.
