Question

There will be a ______ in the demand curve of cars with an increase in the price of petrol.

Options

• Rightward Shift

• Upward Movement

• Leftward Shift

• Downward Movement

Answer 1

There will be a Leftward Shift in the demand curve of cars with an increase in the price of petrol.

Explanation:

Cars and petrol are complementary goods. A rise in petrol’s price reduces demand for cars, shifting the car demand curve leftward rather than causing movement along it.