PRC-3 · Chapter 10 · Question 4 of 70
Automobiles and gasoline are frequently consumed together. If the global price of gasoline doubles, what is the most likely impact on the market for heavy, fuel-inefficient automobiles?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The demand curve for the automobiles will shift to the left
Explanation
Gasoline and automobiles are complementary goods. An increase in the price of a complement causes the demand for the related good to fall (shift left).
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