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Enterprise Rental Car Co. usually charges higher prices for SUVs with one-day return than for subcompacts with one-day return. However, with gasoline prices above $3
Enterprise Rental Car Co. usually charges higher prices for SUVs with one-day return than for subcompacts with one-day return. However, with gasoline prices above $3 per gallon, one day rental prices for SUVs and subcompacts have been lowered to $37 and $41, respectively.
Which of the following statements better explains why the equilibrium rental price of SUVs is lower than the equilibrium rental price of subcompacts?
A. With higher gasoline prices, more renters prefer subcompacts.
B. With higher gasoline prices, more renters prefer SUVs.
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