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If the price of gasoline increased the demand curve for cars would: shift left | shift right | see a movement down and along the existing curve | see a movement up and along the existing curve

User Pharap
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Final answer:

The increased price of gasoline would likely cause the demand curve for cars to shift to the left, indicating a decrease in the demand for cars at every given price point.

Step-by-step explanation:

If the price of gasoline increased, the demand curve for cars would most likely shift to the left. This is because higher gasoline prices typically decrease the demand for cars, particularly those that are not fuel-efficient. It's analogous to situations where a decrease in the demand for a complementary good (gasoline) affects the demand for the related good (cars).

Consider this example: More fuel-efficient cars mean there is less need for gasoline. Consequently, if cars are not fuel-efficient and gasoline prices rise, people are likely to purchase fewer cars, leading to a leftward shift in the car demand curve. This is a different scenario from price changes that cause movements along the curve. Shifts in the demand curve reflect changes in demand at every given price, not the price of the product itself.

Therefore, given the increased price of gasoline, the correct answer is that the demand curve for cars would shift to the left.

User Sushant Srivastava
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