Asked by Grace Gressly on May 02, 2024
Verified
When the price of gas goes down,the demand for tires goes up.A likely possibility is that tires and gas are:
A) substitutes.
B) complements.
C) both inferior goods.
D) both inexpensive.
Complements
Goods or services that are used together, where the increase in consumption of one results in an increase in consumption of the other.
Price of Gas
The price of gas refers to the cost per unit of gasoline, which can fluctuate based on factors such as crude oil prices, supply and demand dynamics, taxes, and refinery operations.
Demand for Tires
The total quantity of tires that buyers are willing and able to purchase at a given price level.
- Comprehend the variances between normal goods, inferior goods, substitutes, and complements.
Verified Answer
Learning Objectives
- Comprehend the variances between normal goods, inferior goods, substitutes, and complements.
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