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If petrol prices double, what happens to the demand for diesel cars?

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Question

If petrol prices double, what happens to the demand for diesel cars?

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Solution

If petrol prices double, the demand for diesel cars is likely to increase because consumers may shift from petrol cars to diesel cars, which can be cheaper to operate.

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Chapter 9: The Price Puzzle: What Drives the Market - Questions and activities [Page 210]

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NCERT Social Science Understanding Society India and Beyond Part 1 [English] Class 9
Chapter 9 The Price Puzzle: What Drives the Market
Questions and activities | Q 2. a. | Page 210
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