Question

question 1
1 pts
if the price of gasoline goes up, how will this impact the market for new trucks? (hint: these new trucks get very poor gas mileage or low gas mileage)

• the demand curve for new trucks will shift to the left.
• none of these answers are correct
• there is no shift in the demand curve for new trucks.
• the demand curve for new trucks will shift to the right.

Explanation:

To determine the impact, we analyze the relationship between gasoline (a complementary good for new trucks with low gas mileage) and new trucks. When the price of gasoline rises, the cost of operating new trucks (which are inefficient in gas usage) increases. This makes new trucks less desirable, so the demand for new trucks decreases. A decrease in demand is represented by a leftward shift of the demand curve.

Answer:

A. The demand curve for new trucks will shift to the left.