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

Expert Answer:

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

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