A decrease in the price of gasoline shifts the demand for auto batteries to the
A)left, because gasoline and auto batteries are substitutes.
B)left, because gasoline and auto batteries are normally used together.
C)right, because gasoline and auto batteries are substitutes.
D)right, because gasoline and auto batteries are normally used together.

Question

Quizplus · Accepted Answer

Gasoline and auto batteries are complements, not substitutes, because they are used together in the operation of gasoline-powered vehicles. A decrease in the price of gasoline can lead to an increase in driving, which in turn can increase the demand for auto batteries.

A Decrease in the Price of Gasoline Shifts the Demand