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.
D) That a drop in the price of gasoline will have little impact on SUV sales.

Question

Quizplus · Accepted Answer

The article states that SUV sales drop with gasoline price rise, which means that gasoline and SUV sales have a negative cross-price elasticity. This means that they are substitute goods, and a drop in the price of gasoline will lead to an increase in SUV sales.

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