Practice question · Multiple choice
Petrol prices double. What happens in the market for large SUVs?
Hints
- You consume an SUV together with petrol.
- When using a good gets dearer, wanting it fades at every price.
Show the answer
B. SUV demand shifts left, because petrol is a complement
Why
Petrol and SUVs are complements: the cost of using an SUV soars, so buyers want fewer at every SUV price, a leftward shift. The SUV’s own price hasn’t moved, so it cannot be a movement along.
Practise The Demand Curve
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