Other things equal,which of the following might shift the demand curve for gasoline to the left?

Question

Quizplus · Accepted Answer

The development of a low-cost electric automobile would provide consumers with a substitute for gasoline-powered cars, which would reduce the demand for gasoline and shift the demand curve to the left.

Answer: C
 An increase in the price of train and air transportation would make these alternatives less affordable for people, causing them to drive instead. This would increase the demand for gasoline and shift the demand curve to the right. Therefore, the opposite effect (leftward shift) would occur if the price of train and air transportation decreased.

Answer: D 
 A large decline in the price of automobiles would make them more affordable for people, increasing the demand for cars and the demand for gasoline. Therefore, the demand curve for gasoline would shift to the right. The opposite effect (leftward shift) would occur if the price of automobiles increased.

Answer: A
 The discovery of vast new tar sands oil reserves in Canada would increase the supply of gasoline, not affect the demand for gasoline. Therefore, it would not cause a shift in the demand curve for gasoline.

Other Things Equal,which of the Following Might Shift the Demand