Which of the following statements correctly describe the elasticities of demand for gasoline and automobiles?
a. The income elasticity of demand for gasoline and automobiles is negative.
b. The price elasticity of demand for gasoline is elastic and the cross-price elasticity between gasoline and SUVs is positive.
c. The price elasticity of demand for gasoline is inelastic and the cross-price elasticity between gasoline and SUVs is negative.
d. The price elasticity of demand for gasoline is inelastic and the income elasticity between gasoline and SUVs is positive.
e. The price elasticity of demand for gasoline is elastic and the income elasticity between gasoline and SUVs is negative.
c
You might also like to view...
"Financial distress" is more easily handled in a __________-oriented financial system, in which ownership of the firm tends to be spread among __________ shareholders than in the other type of system
A) markets; more B) markets; fewer C) banking; more D) banking; fewer
If the company plans to produce 5000 units of output, is using the competitor's technology a good idea?
a. Yes b. No c. It does not matter, at 5000 units you are indifferent between the two technologies d. None of the above
All euro coins circulating in the different countries of the European Union have the same design
a. True b. False Indicate whether the statement is true or false
Demand deposits are essentially
A. coins and currency. B. based on gold deposits with the Fed. C. checkable deposits. D. not legally required to be available sooner than 30 days after a check is presented to a bank.