Cars and gasoline are complements. What will happen to the demand curve for gasoline if the price

Question:

Cars and gasoline are complements. What will happen to the demand curve for gasoline if the price of cars decreases? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

See More Books

Question Posted: Nov 24, 2015 08:28 AM

See More Questions

Assume that butter and margarine are substitutes. What will happen to the demand curve for butter if the price of margarine increases? Why?
What will happen to the demand for Rembrandt paintings if the stock market undergoes a boom? Why?
The Toyota Prius is a gasoline/electric hybrid car that gets 54 miles to the gallon. An article in the Wall Street Journal noted that sales of the Prius had been hurt by low gasoline prices and that...
JinsAppliances has a return-on-assets (investment) ratio of 8 percent. a. If the debt-to-total-assets ratio is 40 percent, what is the return on equity? b. If the firm had no debt, what would the...
Suppose you operate a very profitable sole proprietorship (keep dreaming). Your current year marginal tax rate is 40%, but you expect it to increase to 50% next year due to legislative changes. Your...
Problem Walkthrough Receivables Investment Snider Industries sells on terms of 7/10, net 35. Total sales for the year 2010,000. They percent of customers pay on the ton day and the come her role en...
How Can People Make Good Decisions with Incomplete Information? (pp. 196199)
A shaft is to be designed to support the spur pinion and helical gear shown in the figure on two bearings spaced 700 mm center-to-center. Bearing A is a cylindrical roller and is to take only radial...
The following data are from a completely randomized design. Treatment Treatment Treatment A B C 32 47 33 30 46 36 30 47 35 26 49 36 32 51 40 Sample mean 30 48 36 Sample variance 6.00 4.00 6.50 a. At...
Consider the two languages L1=(a*+b)* and L2=(a*b*)* over the input alphabet {a, b}. Which of the following option describes the relation between the languages L1 and L2? a) LcL b) L2 cL c) L = L, d)...
If income increases and the demand for good X shift as shown in the figure, then is good X a normal or inferior good? Give an example of a good like good X. Price Demand with low income Demand with...
Suppose that the supply curve for solar panels is as shown in the diagram: The government decides that it would like to increase the quantity of solar panels in use, so it offers a $20 subsidy per...
A company enters into the following economic events: 1. Hired a new receptionist. 2. Billed customers for services performed. 3. Announced the signing of a contract that should produce $100,000 of...
City Feb. Cases March Cases April Cases New York 19 56 189 Los Angeles 6 12 201 Chicago 0 3 14 Houston 19 19 272 Philadelphia 0 1 5 Phoenix 23 78 289 San Antonio 6 9 95 San Diego 3 38 258 Dallas 4 13...
Maximize z = 2x+2y x+6y <30 4x + 2y 32 Subject to I 0 W O 0 Maximum is I = y= at
2. Determine the unknown force. a) Fret 3 N Right b) Fret 10. N Down F-22 N F?5N c) Feet 12 N Up F-28 N d) Fret 10. N Right F? F-12N e) Fret = 0 F-16N E-? F-12N F-15 N F-? F-30 N F-25 N F-32 N F=24N...
If y = ( x ^ 3 + 7 ) ^ x , compute y ' ( 1 ) .
To calculate activity expected duration time, the following parameter is essential? Question 7 options: Distribution time of the unit. Time associated with the failure of the unit. Optimistic or...
What proportion of patients in the Bandaid group had a completely healed leg ulcer at 12 months? A. 0.30 B. 0.40 C. 0.60 D. 0.65 E. 0.70
Which of the following is FALSE regarding the purchasing power parity (PPP). a. The PPP is a manifestation of the law of one price b. The PPP says that a country with a higher expected inflation can...
Find the $x$ - and $y$-intercepts on the graph. 6 y 5 4 3 2 1 1 2 3 4 5 5 6 1 23 -2 -6-5-4-3-210 -3 -4 -5 -6
Corey, a young entrepreneur, notices that cigarette lighters sell for only $0.50 each in Utah but they sell for $1.00 each in Nevada. a. If Corey wants to make money by buying and selling lighters,...
The market for foreign currencies is a lot like the market for apples or cars or fish, so we can use the same intuitionas long as we keep reminding ourselves which way is up and which is down....
Now that weve built up some intuition about exchange rates, lets apply the principles more thoroughly. In this question, we discuss the U.S.China exchange rate. Officially, the Chinese government...
THIS IS ONE QUESTION WITH TWO PARTS. PLEASE ANSWER COMPLETELY AND SHOW ALL WORK. (NO EXCEL) Information for Question 1: State Probability Retum on A Return on B Return on C Retum on Portfolio X Boom...
Direct materials (5.0 Ibs. @ $5.00 per Ib.) Direct labor (2.0 hrs. @ $13.00 per hr.) Overhead (2.0 hrs. @ $18.50 per hr.) Total standard cost $25.00 26.00 37.00 $88.00 The predetermined overhead rate...
Problem 1-28 (Algo) (LO 1-4, 1-5, 1-6b 1-7) Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2020, for $316,100 in cash. The book value of Kinman's...

Cars and gasoline are complements. What will happen to the demand curve for gasoline if the price

Question:

Step by Step Answer:

Price of cars down More consu...View the full answer

Modern Principles of Economics

Students also viewed these Economics questions