If the price of gasoline rises, then

Question

Quizplus · Accepted Answer

When the price of gasoline rises, the quantity demanded of gasoline decreases, causing a movement along the demand curve for gasoline. The demand for gas-powered cars may decrease as consumers may prefer more fuel-efficient options like hybrid cars. However, the demand for hybrid cars may not necessarily increase as they may still be more expensive compared to gas-powered cars. Therefore, the correct answer is B, there is an upward movement along the demand curve for gasoline.

If the Price of Gasoline Rises, Then