Asked by Bradley Smith on Sep 24, 2024
Verified
The manager of a gas station noticed that when prices in the convenience store of the gas station decreased,gas sales increased.This could possibly be because the convenience store products are
A) usually complements to the gas sales
B) usually substitutes to the gas sales
C) usually unrelated to the gas sales
D) none of the above
Convenience Store Products
Items sold in convenience stores, often including snacks, beverages, tobacco products, and household essentials.
Gas Sales
Transactions involving the purchase and sale of gas, either in its natural form or after processing, typically for the purpose of energy production or heating.
Complements
Goods or services that are used together, where the demand for one item increases the demand for another.
- Evaluate the contribution of substitutes and complements to the determination of demand elasticity.
Verified Answer
DM
Dylan Maghdid2 days ago
Final Answer :
A
Explanation :
Complementary goods are products that are used together, such as gasoline and snacks or drinks. When the prices of convenience store products decrease, customers may be more likely to buy them and therefore also purchase gasoline while they are at the gas station. This suggests that the convenience store products are complements to gas sales.
Learning Objectives
- Evaluate the contribution of substitutes and complements to the determination of demand elasticity.