Assuming that gasoline and cars are complements in consumption,if the price of gasoline rises,the producer surplus of auto manufacturers decreases.

Question

Quizplus · Accepted Answer

When the price of gasoline rises, the demand for cars decreases as the cost of operating them increases. This leads to a decrease in producer surplus for auto manufacturers as they are selling fewer cars at a lower price.

Assuming That Gasoline and Cars Are Complements in Consumption,if the Price