alleryStart learning →Petrol prices rise and drivers start carpooling. The quantity demanded therefore:
AFalls
BRises
CHolds
DJumps
Answer & Solution
Correct answer: A. Falls
1. A higher price makes buyers look for ways to use less.
2. Carpooling is exactly such a way.
3. So the quantity demanded falls.
_Source: OpenStax Principles of Microeconomics 3e, Chapter 3, Demand and Supply._
Keep practising Demand and Supply
Browse all Demand and Supply questions for Commerce / Business — Tanzania, or explore more Economics topics.
Related questions
When a price floor sits above equilibrium, quantity supplied ends up:The best known price floor in the labour market is the:A legal minimum price that must be paid for a good or service is a price:A rent control law fixing rents below equilibrium will make the quantity of housing suppliA legal maximum price that may be charged for a good is a price:Laws that a government passes to regulate prices are known as price:Cereal and milk are used together, so economists call them:A good that can be used in place of another good is called a: