Answer
The demand would increase.
Work Step by Step
The demand would increase because gasoline is a complementary good to the small cars. Hence, when the complement's price decreases, the demand of the good increases.
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
Published by
McGraw-Hill Education
ISBN 10:
0073511447
ISBN 13:
978-0-07351-144-3
Chapter 3 - Demand, Supply, and Market Equilibrium - Questions - Page 66: 3e
Update this answer!
You can help us out by revising, improving and updating this answer.
Update this answerAfter you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.
