The effect of an increase in the price of gasoline on the demand for sport utility vehicles would be shown by a:
A) rightward shift of the demand curve for sport utility vehicles.
B) leftward shift of the demand curve for sport utility vehicles.
C) movement up and to the left along the demand curve for sport utility vehicles.
D) movement down and to the right along the demand curve for sport utility vehicles.

Question

Quizplus · Accepted Answer

An increase in the price of gasoline would make driving SUVs more expensive, leading consumers to demand fewer SUVs. This would cause the demand curve for SUVs to shift leftward.

The Effect of an Increase in the Price of Gasoline