The article "SUV Sales Drop with Gasoline Price Rise" states
A)That gasoline and SUV sales have a cross-price elasticity that is negative.
B)That gasoline and SUVs are substitute goods.
C)That the cross-price elasticity for SUVs and gasoline is positive.

Question

Quizplus · Accepted Answer

The article states that "as gasoline prices rise, consumers are less likely to purchase SUVs." This indicates that there is a negative relationship between the prices of gasoline and SUVs, which suggests a negative cross-price elasticity between the two goods.

The Article "SUV Sales Drop with Gasoline Price Rise" States