AS Paper 1, June 2019Introduction to Markets and Market Failure
AS Paper 1, June 2019, Q2(b)
A ban on diesel vehicles in city centres will reduce the demand for diesel fuel. This is because:
Multiple choice1 mark
Context
The consensus that diesel emissions are bad for health has led to many cities planning to ban diesel vehicles from their centres. The mayors of Paris, Mexico City, Madrid and Athens have said they intend to ban these vehicles by 2025.
Aconsumers are irrational
Bconsumers expect the price of diesel to rise
Cthe goods are complements
Dthe goods are substitutes