When the price of petrol goes up, demand for cars will _____ .a)riseb)fallc)not changesd)remain unchangedCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

When the price of petrol rises,the demand for petrol driven cars (assuming that price of cars are constant) will fall as petrol and  cars are complementary goods i.e they both are consumed jointly . When the price of petrol rises, its demand will fall and as petrol and petrol driven cars are complement to each other the demand for cars will also fall.

Answer

Naturally jab petrol hi mahnga ho jaayega to car Kon kharidna pasand karega then demand will fall

Answer

Explanation:

When the price of petrol goes up, the demand for cars will fall. This is because the price of petrol is a significant factor influencing the cost of owning and operating a car. The increase in petrol prices leads to higher expenses associated with running a car, which in turn affects consumers' purchasing decisions.

Factors Affecting Demand for Cars:
1. Price of petrol: As the price of petrol increases, the cost of fueling a car also rises. This makes owning and operating a car more expensive, leading to a decrease in demand.

2. Substitutes: If the price of petrol increases significantly, consumers may seek alternative modes of transportation such as public transportation, biking, or walking. This reduces the demand for cars.

3. Income: Higher petrol prices can reduce consumers' disposable income, leaving them with less money to spend on purchasing a car. This can lead to a decrease in demand, especially for lower-income individuals.

4. Consumer preferences: Some consumers may prioritize fuel efficiency and environmental concerns when choosing a car. Higher petrol prices may discourage them from purchasing cars that have high fuel consumption, leading to a decrease in demand for such vehicles.

5. Economic conditions: During periods of economic downturn or uncertainty, consumers may delay or postpone purchasing a car due to concerns about future expenses. Higher petrol prices can further contribute to this hesitation, resulting in a decrease in demand.

Conclusion:
In conclusion, when the price of petrol goes up, the demand for cars will fall. This is primarily due to the increased cost of owning and operating a car, which can make it less affordable for consumers. Other factors such as the availability of substitutes, income levels, consumer preferences, and economic conditions also play a role in influencing the demand for cars.

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