When the price of automobile insurance increases sharply, what is the likely impact on the market for automobiles?
A) an increase in quantity demanded
B) an increase in demand
C) a decrease in quantity demanded
D) a decrease in demand

Question

Quizplus · Accepted Answer

An increase in the price of automobile insurance raises the overall cost of owning a car, which can lead to a decrease in demand for automobiles as fewer people are willing or able to afford the additional expense.

When the Price of Automobile Insurance Increases Sharply, What Is