ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increases
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decreases
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doesn’t change
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None of the above
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Detailed explanation-1: -Lower Oil Prices Fueling Demand for Automobiles As gasoline is a petroleum-based product, price changes in crude oil directly affect its price. A decrease in the price of gasoline means automobile owners have more disposable income to use for other purchases.
Detailed explanation-2: -Gasoline and cars are complementary goods because they are used together. If there is an increase in the price of gasoline, the demand for cars will decrease. This will shift the demand curve for cars to the left, leading to a decrease in the equilibrium price and quantity of cars.
Detailed explanation-3: -therefor if price of petrol will be increase the cars will downward in the curve.as the demand decreases with the increase of price. Answer: With increase in the price of petrol there will be a decrease in the demand of cars as both petrol and cars are complementary goods..
Detailed explanation-4: -Answer and Explanation: A decrease in price for automobiles leads to overall demand for gasoline.