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During the 1970s,OPEC's Output Restrictions Caused Gasoline Prices to Increase

Question 63

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) cross; positive
C) income; negative
D) income; positive
E) price; negative

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