Patrick lives near two gas stations,Exxon and Shell.If Exxon decreases the price of gas,we predict that the quantity of gasoline demanded at Shell will
A) decrease because Exxon and Shell gas are complements.
B) decrease because Exxon and Shell gas are substitutes.
C) increase because Exxon and Shell gas are substitutes.
D) increase because Exxon and Shell gas are complements.
E) not change Exxon and Shell are different brands of gasoline.

Question

Quizplus · Accepted Answer

Exxon and Shell gas are substitutes, meaning if the price of Exxon's gas decreases, consumers are likely to buy more gas from Exxon instead of Shell, leading to a decrease in the quantity of gasoline demanded at Shell.

Patrick Lives near Two Gas Stations,Exxon and Shell