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Which of the following events could shift the demand curve for gasoline to the left? a

Economics Jan 22, 2021

Which of the following events could shift the demand curve for gasoline to the left?

a. Income of gasoline buyers rises, and gasoline is a normal good.

b. Income of gasoline buyers falls, and gasoline is an inferior good.

c. Public service announcements are run on television, encouraging people to walk or ride bicycles instead of driving cars.

d. The price of gasoline rises.

Expert Solution

The correct answer is: c. Public service announcements are run on television, encouraging people to walk or ride bicycles instead of driving cars.

A shift in the demand curve happens when the quantity demanded decreases or increases at each price level. This happens when other factors influencing the demanded apart from the own-price.

If there's a public announcement on TVs that encourage people to walk or ride bicycles rather than driving cars, this means that people will use cars less often. As a result, the demand for gasoline will decrease, causing the demand curve to shift to the left.

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