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Jigsaw — Economics demand shift

Economics

Task: Explain what happens to the demand curve for electric cars if petrol prices rise sharply, and name one effect on petrol-car demand.

Rebuild the answer: model on the left, hint on the right. Then pick your choice-board level.

Model · Step 1

Petrol and electric cars are substitutes for many journeys.

Hint

Think: if one gets dearer, people look for alternatives.

Model · Step 2

Higher petrol prices make running petrol cars more expensive.

Hint

Running cost, not just sticker price.

Model · Step 3

Demand for electric cars rises at each price → demand curve shifts right.

Hint

More wanted even if EV prices stay the same.

Model · Step 4

Demand for petrol cars falls → demand curve shifts left (or quantity demanded falls along the curve if only petrol price rose).

Hint

Be careful: petrol price change is a movement along petrol-car demand; EV demand shifts.

Model · Step 5

Conclusion: EV demand shifts right; petrol-car demand is under pressure as buyers switch.

Hint

One clear sentence for the examiner.

Choice board