A Fall in the Price of Gas Leads to an Increased

question 11

Multiple Choice

A fall in the price of gas leads to an increased demand for cars in the market.In this context, gas and car are examples of:

• A)substitute products.
• B)complementary products.
• C)alternate products.
• D)luxury products.
• E)prestige products.

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Definitions:

Consumer Equilibrium

The state in which the allocation of goods and services aligns with consumer preferences, and marginal utility per unit of expenditure is equal across all goods.

Olive Oil

A liquid fat obtained from olives, a traditional tree crop of the Mediterranean Basin, used in cooking, cosmetics, pharmaceuticals, and as a fuel for traditional oil lamps.

Dish Soap

A detergent used for cleaning dishes and utensils, which removes grease and food residues.

Consumer Equilibrium

A state where an individual allocates their income in a way that maximizes their utility, considering the prices of goods and services and their personal preferences.