Because of a sharp increase in the price of petrol, the demand for Sports Utility vehicles (SUVs) has decreased. So, the high price of petrol leads to a
A) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
B) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
C) leftward shift of the demand curve for SUVs and the supply curve of SUVs.
D) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs.
E) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs.
Correct Answer:
Verified
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