Solved

"A Reduction in Gasoline Prices Caused the Demand for Gasoline

Question 67

Multiple Choice

"A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also led to an increase in demand for large cars, causing their prices to rise." These statements


A) are essentially correct.
B) contain one error; the lower gasoline prices would cause an increase in the quantity demanded of gasoline, not an increase in demand.
C) contain one error; the lower gasoline prices would increase the quantity demanded of large cars, not the demand.
D) contain two errors; the lower gasoline prices would cause the quantity of gasoline demanded (rather than the demand) to increase, and the lower gasoline price would cause an increase in quantity demanded (rather than the demand) for large cars.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents