Question

Suppose the price of gasoline increases and that sport utility vehicles get poor gas mileage compared to other available cars. One would expect: Select one: a. the demand for gasoline to decrease. b. the demand for sport utility vehicles to decrease. c. the demand for sport utility vehicles to increase. d. the quantity of sport utility vehicles demanded to decrease.

Answer 1

Answer:

b

Explanation:

If the sport utility vehicle has a bad mileage, it means that it burns fuel quickly, so you would have to buy gasoline more frequently.

sport utility vehicle is a complement for gasoline

Complementary goods are goods that are consumed together

If the price of gasoline increases, it would become more expensive to maintain sport utility vehicle. As a result, the demand for sport utility vehicle would decrease. this would shift the demand curve for sport utility vehicle inward.

A increase in the price of gasoline would result in a decrease in the quantity demanded of gasoline and not a reduction in demand.