Other things equal, which of the following might shift the demand curve for gasoline to the left?
A
A decrease in the price of gasoline
B
An increase in the price of electric cars
C
A rise in consumer income
D
A decrease in public transportation fares
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1
Understand that a demand curve shifts when a non-price determinant of demand changes, causing the quantity demanded to change at every price level.
Recall that a decrease in the price of gasoline itself causes a movement along the demand curve, not a shift of the demand curve.
Consider that an increase in the price of electric cars, a substitute good, would likely increase the demand for gasoline, shifting the demand curve to the right, not left.
Recognize that a rise in consumer income generally increases demand for normal goods like gasoline, shifting the demand curve to the right.
Identify that a decrease in public transportation fares makes public transit more attractive, reducing the demand for gasoline and shifting the demand curve to the left.