Question
Fill in the blank with appropriate alternatives given below:
When the price of petrol goes up, demand of cars will ___________.
rise
fall
not change
remain unchanged
Solution
When the price of petrol goes up, demand of cars will fall.
Explanation:
Cars and petrol are complementary goods, i.e., goods that are demanded together. In such cases, a rise in the price of one leads to a fall in the demand for the other good. Thus, a rise in the price of petrol will lead to a fall in the demand for cars.
Is there an error in this question or solution?
Solution Fill in the Blank with Appropriate Alternatives Given Below: When the Price of Petrol Goes Up, Demand of Cars Will ___________. Concept: Demand.
