Which of the following would be most likely to cause an outward shift of the demand curve for electricity?
A) a decrease in the price of natural gas
B) a decrease in the price of electricity
C) an increase in the price of heating oil
D) an increase in the price of air conditioners

Question

Quizplus · Accepted Answer

An increase in the price of heating oil would make electricity a more attractive option for heating, thus increasing the demand for electricity. This is because heating oil and electricity can be substitutes for heating purposes; as the price of heating oil increases, consumers might switch to using electricity for heating, thereby increasing its demand.

Which of the Following Would Be Most Likely to Cause