Multiple Choice
During the 1970s, OPEC's output restrictions caused gasoline prices to increase sharply. Coincidentally, demand for gas- guzzling cars fell. A likely explanation for these observations is that gasoline and cars had a elasticity of demand that was .
A) cross; negative
B) income; positive
C) price; negative
D) cross; positive
E) income; negative
Correct Answer:
Verified
Correct Answer:
Verified
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