Advertisements
Advertisements
Question
If prices of cars rise, many people may put off buying a new car. So the demand for petrol will fall.
Options
True
False
Advertisements
Solution
This statement is True.
Explanation:
If car prices rise, some people may delay or avoid purchasing a new car. Since cars and petrol are complementary goods, a decrease in car purchases would likely lead to a decrease in the demand for petrol.
APPEARS IN
RELATED QUESTIONS
Find the odd word
Assumptions to law of demand -
The Law of Demand was introduced by ______.
State with reason whether you agree or disagree with the following statement.
There is an inverse relationship between price and demand.
The movement on or along the given demand curve is known as ______
Explain the law of demand.
Any statement about demand for a good is considered complete only when the following is/are mentioned in it:
If a good is inferior good, then purchases of that good will decrease when ______.
The following table shows the amount of sugar bought by a household at different prices:
| Period | Price (₹ per kg) | Amount Bought (kg) |
| Jan. 2000 | ₹ 15 | 4 |
| Feb. 2000 | ₹ 16 | 5 |
Does the behaviour of household contradict the law of demand? Give reasons in support of your answer.
What does the term "ceteris paribus" mean in relation to the Law of Demand?
Which formula correctly expresses the factors that determine the demand for a commodity?
