Rising prices for automobiles decrease the demand for
A) bicycles and long lineups at the bicycle shops.
B) gasoline and a fall in gas prices at the pump.
C) public transportation and a fall in fares.
D) public transportation and a rise in fares.
E) motel rooms and a rise in the price we pay for motel rooms.

Question

Quizplus · Accepted Answer

Rising prices for automobiles make them less affordable or less attractive to consumers, leading to a decrease in the demand for gasoline as fewer people buy or use cars. This decreased demand for gasoline can result in a fall in gas prices at the pump.

Rising Prices for Automobiles Decrease the Demand for