If the price of gasoline rises, the price of automobiles should also rise because gasoline and automobiles are complementary products.

Question

Quizplus · Accepted Answer

Gasoline and automobiles are not complementary products. Gasoline is a consumable product that is used to fuel automobiles, but automobiles can also run on alternative sources of energy such as electricity or ethanol. The price of gasoline may have an impact on consumer demand for automobiles, but it is not a direct determinant of their price. The price of automobiles is affected by factors such as production costs, technological advancements, and market competition.

If the Price of Gasoline Rises, the Price of Automobiles