Question

demand of car and petrol is called ?​

Answer 1

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Here is your answer

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▶ COMPLEMENTARY GOODS:

✡ Complementary goods are those goods which are used together.

✡ When the goods are complementary the price of one good effect the demand of other good.

✡ Example of complementary goods is pen and ink or electric bulb and electricity or Car and Petrol.

▶ EXPLANATION:

⚛ An example of a complementary good for "cars" is Petrol. Driving a car without petrol is impossible until we have any other option for the car other than petrol. So let us assume the car is run only with petrol.

⚛ So, when the price of cars increases, the demand for the car will decrease which further decreases the demand for petrol which is a complementary good for cars.

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Answer 2

Answer:

The demand for cars and petrol is called Inelastic demand.

Explanation:

Inelastic demand exists in an economic crisis in which consumer demand for a product does not vary proportionately with a decline or rise in its cost.

Complementary goods are those goods that are complementary to one another in the sense that they exist utilized together or jointly such as car and petrol, pen and ink, etc.

In other terms, they are goods that are demanded jointly. For such goods, there exists an inverse relationship between the demand for one good and the cost for another good. That exists, a rise in the cost of petrol will guide to a decline in the demand for cars.

Therefore, the correct answer is Inelastic demand.

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