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 car manufacturers lower their costs, and car prices fall as a result.

The answer is: Consumers have more money to buy cars, and the prices of cars and car accessories rise as a result.

Demand-pull inflation exist if the average amount demand for a certain product outnumbered the average amount of supply. This tend to happen when the standard of living in a certain country increases.

When that happen, average people would have more money to send for consumption. This would increase the number of demands for all products in general. Due to the increase of demand, the producers would respond by increasing the price of their products in order to obtain more profit.

A is the correct answer.

Explanation:

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