Question

Which scenario is an example of demand-pull inflation?

Consumers have more money to buy cars, and the prices of cars and car accessories 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.

Answer 1

"Consumers have more money to buy cars, and the prices of cars and car accessories rise as a result."

This is demand-pull inflation — higher consumer demand pushes prices up. The others describe cost-push inflation (wage-driven), falling demand, or cost reductions.