The United Kingdom plans to end the use of gas-powered and diesel-powered cars by the year 2040. At the same time, car manufacturers, such as General Motors and Nissan, are increasing the number of electric car models they produce. Based on this information, which of the following statements is/are correct?
(i) If the supply of new electric cars is greater than the demand for new electric cars, then the price of electric cars will fall in the future.
(ii) The demand for gasoline will fall in the future.
(iii) The demand for electricity will rise in the future.
(iv) The demand for diesel will rise in the future.

Question

Quizplus · Accepted Answer

(i) According to basic economic principles, if supply exceeds demand, prices tend to fall. (ii) With the shift towards electric cars, the demand for gasoline is likely to decrease. (iii) As more electric cars are used, the demand for electricity, as a fuel alternative, is expected to increase. (iv) is incorrect because the demand for diesel is expected to decrease, not increase, with the move away from gas-powered and diesel-powered cars.

The United Kingdom Plans to End the Use of Gas-Powered