If the demand for electric cars falls when the price of electricity rises, then electric cars and electricity are:
A)substitutes.
B)complements.
C)rival in consumption.
D)both expensive.

Question

Quizplus · Accepted Answer

Electric cars and electricity are complements because the demand for electric cars decreases when the price of electricity, which is needed to power them, increases. This indicates that they are used together, and an increase in the price of one leads to a decrease in the demand for the other.

If the Demand for Electric Cars Falls When the Price