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