In complementary goods, which kind of shift in demand occurs with an increase in the price of petrol and a constant price of cars?

Decrease in demand

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Greater demand

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Constant demand

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Increase in demand

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Solution

The correct option is A
Decrease in demand

Due to an increase in the price of petrol with constant price of cars, consumers would be less inclined to buy cars. This is a situation of decrease in the demand or a backward shift in the demand curve.

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In which of the following goods, increase in the price of one causes an increase in demand of another?

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