Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to:
A. increase the demand for diesel cars.
B. decrease the demand for gasoline.
C. decrease the demand for diesel cars.
D. increase the demand for gasoline.
Answer:A
Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to:
A. increase the demand for diesel cars. B. decrease the demand for gasoline. C. decrease the demand for diesel cars. D. increase the demand for gasoline.
Explanation: The change in the price of gasoline causes a movement along the demand for gasoline curve, not a shift. Higher gasoline prices lead to an increase in the demand for diesel cars as consumers seek to take advantage of better gas mileage.