Enterprise Rental Car Co. usually charges higher prices for SUVs with one-day return than for subcompacts...

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Economics

Enterprise Rental Car Co. usually charges higher prices for SUVs with one-day return than for subcompacts with one-day return. However, with gasoline prices above $4 per gallon, one day rental prices for SUVs and subcompacts have been lowered to $35 and $39, respectively. Which of the following statements better explains why the equilibrium rental price of SUVs is lower than the equilibrium rental price of subcompacts? Gasoline is a substitute good, and subcompacts are more fuel-efficient. Gasoline is a complementary good, and subcompacts are more fuel-efficient.

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