Which of the following would shift the demand curve for gasoline to the right?

Question

BlackTom AI · Accepted Answer

We begin by restating the question and listing all answer choices so we can compare how each would affect the demand for gasoline.
Question: Which of the following would shift the demand curve for gasoline to the right?
Options:
- A) A decrease in the expected future price of gasoline
- B) A decrease in the price of gasoline
- C) An increase in the price of cars, a complement for gasoline
- D) An increase in consumer income, assuming gasoline is a normal good

Now, evaluate each option:
Option A: A decrease in the expected future price of gasoline. If consumers expect gasoline to be cheaper in the future, they might delay purchases today, reducing current demand. This creates a leftward shift, not a rightward shift. Also, because it affects timing expectations rather than current income, the direct impact on current demand is typically negative or neutral rather than positive.
Option B: A decrease in the price of gasoline. A movement along the demand curve due to price change would be a substitution/complementary effect, i.e., a change in quantity demanded along the same demand curve, not a shift of the demand curve itself. Therefore, this option does not shift the demand curve to the right.
Option C: An increase in the price of cars, a complement for gasoline. If gasoline and cars are complements, a higher car price tends to reduce car purchases, which reduces gasoline demand as a derived demand. This would shift the demand curve for gasoline to the left, not to the right.
Option D: An increase in consumer income, assuming gasoline is a normal good. For a normal good, higher income increases overall demand. This shifts the entire demand curve to the right, reflecting a higher quantity demanded at each price level.

Putting the pieces together, only Option D describes a factor that increases overall willingness to purchase gasoline at any given price, resulting in a rightward shift of the demand curve. The other options involve expectations about future prices, price changes themselves, or a decrease in demand due to higher prices of a related good, which do not produce the rightward shift described in the question.

Which of the following would shift the demand curve for gasoline to the right?Single choice

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