8. What will be the effect of each of the following on demand for SUVs:

Question

- a) SUVs become more popular. b) Gas price substantially increases. c) A recession hits the country. d) Newspapers report large number of fatal accidents involving small cars.

Answer 1

a)  If SUV's become more popular, demand goes up.

 

b)  If gas prices substantially increase, demand for SUVs goes down.

 

c)  If a recession hits the country, demand for SUVs goes down.

 

d) If newspapers report large number of fatal accidents

   involving small cars, demand for SUVs goes up.