If the Price of Gasoline Rises Sharply and the Demand

question 340

Multiple Choice

If the price of gasoline rises sharply and the demand for trucks falls, then the two goods are

• A) complements.
• B) normal goods.
• C) substitutes.
• D) inferior goods.

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Definitions:

Consumer Needs

Fundamental requirements that motivate consumer behaviors and decisions in the marketplace.

Production Costs

The total expenses incurred in the manufacturing or production of goods, including raw materials, labor, and overhead costs.

Environmentally Friendly

Practices, products, or habits that cause minimal harm to or positively benefit the environment, often by conserving resources and reducing pollution.

Competitive Pressures

Forces in the market that compel companies to compete more aggressively, often leading to improvements in quality, service, and prices for consumers.