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

Question

Quizplus · Accepted Answer

The Answer of 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

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