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Which scenario is an example of demand-pull inflation? Consumers have more money to buy cars, and the prices of cars and car parts rise as a result. An increase in workers’ wages raises the production cost of cars, and car prices rise as a result. The demand for cars falls as consumers have less disposable income, and car prices fall as a result. A government bailout helps car manufacturers lower their costs, and car prices fall as a result.

Deborah Edwards

in Social studies

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Carlton Burgess on August 26, 2018

The answer is: the Consumers have more money to buy cars, and the prices of cars and car accessories increase as a result.The demand pull inflation exist if the average of the quantity demand of a particular product exceeded the average of the amount of the offer. This tends to occur when the standard of living in a particular country increases.When that happens, the average of the people would have more money to send to the consumer. This would increase the number of demands of all products in general. Due to increased demand, the producers would respond by increasing the price of their products in order to get more benefits.


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