The demand, D, for gasoline at Station A is a function of the price, a, of gas at Station A and the price, b, of gas at Station B across the street. Thus, . Do you expect b to be positive or negative?

Question

The demand, D, for gasoline at Station A is a function of the price, a, of gas at Station A and the price, b, of gas at Station B across the street. Thus,  . Do you expect  b to be positive or negative?

Quizplus · Accepted Answer

The Answer of The demand, D, for gasoline at Station A is a function of the price, a, of gas at Station A and the price, b, of gas at Station B across the street. Thus,  . Do you expect  b to be positive or negative?

The Demand, D, for Gasoline at Station a Is a Function