If the cross-price elasticity of demand for SUVs with respect to the price of gasoline is -0.10, and gasoline prices rise by 18 percent, then SUV sales should, ceteris paribus,

A. Rise by 1.8 percent.
B. Fall by 18 percent.
C. Rise by 18 percent.
D. Fall by 1.8 percent.


Answer: D

Economics

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