e Corolla went up to $14,000. If a buyer were to go car shopping, he or she would see that the Honda Civic is cheaper with about the same qualities. Since the Corolla cost more they would buy the Civic instead of the Corolla. This is called the rise in the price of the substitute.
             Another factor that would affect the rise in demand would be a drop in the price of a complement. If consumers knew that the price of gas was going to drop for the next year then they would probably buy more cars. With the gas price going down, this would give consumers an incentive to buy a fuel-efficient car like the Civic. For example lets say that gas is going to go down from $2.00 to $1.50 and a consumer needed a car. Knowing that the Civic is a ULEV with great gas mileage, he or she would be more willing to buy the car. If insurance prices were to go down as well, that would be another incentive for consumers to buy cars and create a rise in demand.
             This would be a good example of the Cross-Price Elasticity, which is the responsiveness of de
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