The recent reduction in the price of oil has increased the demand for foreign automobiles. Based on this statement, what may be concluded about price, cross-price, or income elasticity of demand?
What will be an ideal response?
The cross-price elasticity of demand between foreign automobiles and oil is negative, suggesting complementary products.
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The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199
Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. What is the value of Lana's consumer surplus? A) No consumer surplus is generated because Lana will not buy the Wii. B) $249 C) $225 D) $24
In part, an antitrust laws
A) provide for strict product liability. B) prohibit charging prices that customers think are too high. C) require firms with profits to pay dividends. D) prohibit monopolistic practices.