Question

An increase in the market demand for gasoline, all else equal, could be caused by

Answer 1

The correct answer is: "A decrease in the price of gasoline".

The demand function represents the quantity of a certain good or service that consumers are willing to purchase in the market at different price levels. The law of demand states that there is an inverse relationship between price and quantity supplied (ceteris paribus, hence, given that the rest remains equal).Therefore, when the price charged decreases, the amount that consumers are willing to buy increases.