Question

the toyota prius is a gasoline - electric hybrid car that gets 54 miles to the gallon. an article in the wall street journal notes that sales of the prius have been hurt by low gasoline prices and that “americans are now more likely to trade in a hybrid or an electric vehicle for an suv. does the article indicate that gasoline - powered cars and gasoline are substitutes or complements? briefly explain. a. substitutes, because the more consumers buy of one good, the less they will buy of the other good. b. complements, because they are used for the same purpose. c. substitutes, because the more consumers buy of one good, the more they will buy of the other good. d. complements, because they are used together. does it indicate that gasoline - powered cars and hybrids are substitutes or complements? a. substitutes, because the more consumers buy of one good, the less they will buy of the other good. b. complements, because they are used for the same purpose. c. substitutes, because the more consumers buy of one good, the more they will buy of the other good. d. complements, because they are used together.

Explanation:

Substitutes are goods where an increase in the consumption of one leads to a decrease in the consumption of the other for the same purpose. Complements are goods used together. In the context of gasoline - powered cars and hybrids, they are substitutes as consumers are trading in one for the other.

Answer:

A. Substitutes, because the more consumers buy of one good, the less they will buy of the other good.