To reduce our dependence on foreign oil,policy makers must realize that the cross-price elasticity sign for gasoline and fossil fuel-burning cars is negative.

Question

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The cross-price elasticity sign between gasoline and fossil fuel-burning cars is negative, meaning that as the price of gasoline increases, the demand for fuel-efficient cars increases, leading to a reduction in our dependence on foreign oil. Policy makers must take this into consideration when implementing measures to reduce reliance on foreign oil.

To Reduce Our Dependence on Foreign Oil,policy Makers Must Realize