When the price of petrol decreases, the demand for automobiles increases. It implies that petrol and…
Petrol and automobiles are complementary goods because they are used together. A fall in the price of petrol lowers the cost of using an automobile and can therefore…
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When the price of petrol decreases, the demand for automobiles increases. It implies that petrol and automobiles are __________ .
Answer and explanation
Correct answer B
Petrol and automobiles are complementary goods because they are used together. A fall in the price of petrol lowers the cost of using an automobile and can therefore increase demand for automobiles.
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Maharashtra and Goa SET (MH SET)