Consider the following two uses of the word "demand" in news articles:
1. An article in the Wall Street Journal noted that an "increase in the price of oil quickly reduces demand for oil."
2. A different article in the Wall Street Journal noted: "Electric cars are poised to reduce U.S. gasoline demand by 5% over the next two decades..."
Do you agree with how the first Wall Street Journal article uses the word "demand"?
A. No, the article incorrectly assumes that price can influence the amount of oil that consumers purchase.
B. No, a change in the price of oil affects the quantity of oil demanded, not the demand for oil.
C. Yes, the article is correct in its use of the word "demand."
D. No, this should be the market demand for oil, not the demand for oil.
Do you agree with how the second Wall Street Journal article uses the word "demand"?
A. Yes, the article is correct in its use of the word "demand."
B. No, this would reduce the quantity of gasoline demanded, not the demand for gasoline.
C. No, the article incorrectly assumes that electric cars and gasoline use are related.
D. No, this should be the market demand for gasoline, not the demand for gasoline.
Answer (2)
The first article misuses the term "demand" and should refer to the quantity demanded when price changes. The second article correctly uses "demand" to discuss the effects of electric cars on gasoline usage. Understanding these distinctions is essential in economics. ;
The first article misuses 'demand' and should refer to quantity demanded, making option B the correct answer. The second article correctly uses 'demand' to discuss changes in consumer behavior due to electric cars, making option A the correct answer. Understanding these distinctions is vital in economics.
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