Multiple choice

The price of petrol increasing, leading to demand for large cars falling is an example of a:

  1. change in the population

  2. complementary good

  3. substitute good

  4. change in expectations about the market

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Petrol and large cars are complementary goods because they are used together; an increase in the price of one reduces the demand for the other.