It Is Estimated That a 3 Percent Drop in the Price

Multiple Choice

It is estimated that a 3 percent drop in the price of Asian and European cars will decrease the demand for American cars by 0.84 percent. From this information one can conclude that:

A) the income elasticity of demand for American cars is less than 1.
B) European and Asian cars are luxuries.
C) European and Asian cars are substitutes for American cars.
D) European and Asian cars are complements for American cars.