If the price of petrol increases and the prices of cars remain constant, how would the consumer react to this situation?
Asked by Topperlearning User | 22nd Apr, 2015, 06:41: AM
When petrol prices increase, the consumers would be less inclined to buy cars, even when the prices of cars are constant. This is a situation of a decrease in demand or a backward shift in demand.
Answered by | 22nd Apr, 2015, 08:41: AM
Kindly Sign up for a personalised experience
- Ask Study Doubts
- Sample Papers
- Past Year Papers
- Textbook Solutions
Verify mobile number
Enter the OTP sent to your number