Fill in the blank with appropriate alternatives given below: When the price of petrol goes up, demand of cars will ___________.

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KollegeApply · Accepted Answer

When the price of petrol goes up, demand of cars will fall. Explanation: Cars and petrol are complementary goods, i.e., goods that are demanded together. In such cases, a rise in the price of one leads to a fall in the demand for the other good. Thus, a rise in the price of petrol will lead to a fall in the demand for cars.

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