Question

Which of the following would most likely increase the demand for gasoline?

a) Increase in electric vehicle sales
b) Decrease in the price of gasoline
c) Introduction of a more fuel-efficient engine
d) Expansion of public transportation

Answer 1

A decrease in the price of gasoline will increase its demand, as lower prices make a product more attractive, leading to a higher quantity demanded. The correct option is B.

Step-by-step explanation:

The introduction of factors that encourage the use of gasoline will increase its demand. Of the options given, a decrease in the price of gasoline would most likely increase the demand for gasoline. This is because lower prices typically make a product more attractive to consumers, leading to a higher quantity demanded.

Conversely, an increase in electric vehicle sales, the introduction of more fuel-efficient engines, and the expansion of public transportation would all likely decrease the demand for gasoline as they provide alternatives or reduce consumption.