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Suppose That a 5% Increase in the Price of Gasoline

Question 39

Multiple Choice

Suppose that a 5% increase in the price of gasoline leads to a 15% decrease in the quantity demanded of SUVs.The cross-price elasticity of demand for SUVs is:


A) 3.0.
B) 3.3.
C) .33.
D) 33.

Correct Answer:

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