Supply and demand analysis suggests that a sharp increase in the price of gasoline will cause the
A) price of fuel-efficient compact cars to decrease.
B) supply of gasoline to decrease.
C) demand for large luxury cars to increase.
D) demand for fuel-efficient cars to increase.

Question

Quizplus · Accepted Answer

A sharp increase in the price of gasoline typically leads consumers to seek more fuel-efficient options, increasing the demand for fuel-efficient cars.

Supply and Demand Analysis Suggests That a Sharp Increase in the Price