Multiple Choice
A change in all of the following variables will change the market demand for a product except:
109
views
3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Other things equal, which of the following might shift the demand curve for gasoline to the left?
A
A decrease in the price of gasoline
B
An increase in the price of electric cars
C
A rise in consumer income
D
A decrease in public transportation fares
Verified step by step guidance1
Understand that a demand curve shifts when a non-price determinant of demand changes, causing the quantity demanded to change at every price level.
Recall that a decrease in the price of gasoline itself causes a movement along the demand curve, not a shift of the demand curve.
Consider that an increase in the price of electric cars, a substitute good, would likely increase the demand for gasoline, shifting the demand curve to the right, not left.
Recognize that a rise in consumer income generally increases demand for normal goods like gasoline, shifting the demand curve to the right.
Identify that a decrease in public transportation fares makes public transit more attractive, reducing the demand for gasoline and shifting the demand curve to the left.
Related Videos
Related Practice
