Question

which of the following is least likely to increase the demand for new tires?
a. an increase in consumer income
b. an increase in the number of miles people drive per year
c. a decrease in the price of cars
d. a decrease in the price of tires

Explanation:

• Option a: New tires are a normal good for most consumers, so higher income raises demand.
• Option b: More driving increases tire wear, raising demand for replacements.
• Option c: Cheaper cars lead to more cars owned, increasing demand for tires (complementary good).
• Option d: A decrease in tire price causes a movement along the demand curve (quantity demanded increases), not a shift of the entire demand curve itself. This does not increase overall demand for tires.

Answer:

d. a decrease in the price of tires