Question

Which ONE of the following will affect the quantity demanded of cars, but not the demand for cars?



A. an increased preference for using public transport
B. an increase in the general income level in the economy
C. an increase in the price of petrol
D. an increase in the price of a car

Answer 1

Answer:

an increased preference for using public transport

Answer 2

The correct answer is OPTION B: An increase in the general income level in the economy.

• Willingness and ability of a client to purchase a specific quantity of a product at a specific price.
• This suggests that demand is influenced by at least two other factors in addition to the price.
• Economists define willingness to buy as a desire based on personal interests and preferences.
• You won't buy something if you don't need or want it. The ability to purchase demonstrates the importance of money.
• Because professors earn more money, they can usually afford better housing and transportation than students.