When the Price of Gas Goes Up and the Demand

question 241

Multiple Choice

When the price of gas goes up and the demand for tires goes down, this means tires and gas are:

• A) substitutes.
• B) complements.
• C) both expensive.
• D) both inexpensive.

---

Definitions:

Mortgagor

An individual or entity who borrows money to purchase property and pledges that property as collateral for the loan.

Oral Agreement

A verbal contract between parties that is legally binding, although harder to prove than a written agreement.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be legally enforceable.

Sale of Land

A legal transaction involving the transfer of ownership of land from one party to another in exchange for a price paid or to be paid.