Question

Consider the following two uses of the word​ "demand" in news​ articles:

    i. An article in the Wall Street Journal noted that an​ "increase in the price of oil quickly reduces demand for​ oil."

    ii. A different article in the Wall Street Journal​ noted: "Electric cars are poised to reduce U.S. gasoline demand by​ 5% over the next two​ decades...."

​Sources: Josh​ Zumbrun, "Oil's Plunge Could Help Send Its Price Back​ Up," Wall Street Journal​,

February​ 22, 2015; and Lynn Cook and Alison​ Sider, "U.S. Gasoline Demand Is Likely to​ Slide," Wall Street

Journal​, June​ 20, 2016.

Do you agree with how the first Wall Street Journal article uses the word​ "demand"?

A.

​Yes, the article is correct in its use of the word​ "demand."

B.

​No, this should be the market demand for​ oil, not the demand for oil.

C.

​No, a change in the price of oil affects the quantity of oil​ demanded, not the demand for oil.

D.

​No, the article incorrectly assumes that price can influence the amount of oil that consumers purchase.

Do you agree with how the second Wall Street Journal article uses the word​ "demand"?

A.

​No, this would reduce the quantity of gasoline​ demanded, not the demand for gasoline.

B.

​No, this should be the market demand for​ gasoline, not the demand for gasoline.

C.

​Yes, the article is correct in its use of the word​ "demand."

D.

​No, the article incorrectly assumes that electric cars and gasoline use are related.

Answer 1

& Ansuur C No, it is a wrong usage of the word "demand». Au increare in price of oil reduces the quantity demanded and not the demand. The Its the movement of the equilibrium along the demand curue. Price of oil ----- -- a. so quantity demanded The equililerinin moves from Eo to & as price inceares.

Dr Dusucer C. Electric Cars are sulestitutes of Gasoline to Cars. And for Gasoline Cards and Gasoline are complementary goods Decrease in the saloumption of Gasoline cars, will reduce the demand for gasoline. of gasolue Price - Do Ba guantity Demanded The demand cuuce will shift lefthands.