Gasoline and bicycles are complements in consumption.Suppose we increase the federal gasoline tax to $1 per gallon.What are the initial changes that result from the tax as these markets adjust to a new general equilibrium?
A) Gasoline price rises,demand for bicycles shift s leftward.
B) Gasoline price rises,demand for bicycles shifts rightward.
C) Gasoline price rises,move downward along bicycle demand curve.
D) Gasoline price rises,move upward along bicycle demand curve.
Correct Answer:
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