A drop in the price of gasoline from $1.75 to $1.25 per litre causes purchases of cars to rise from 20 000 to 40 000.The numerical value of the cross-price elasticity between these two goods is therefore:
A)-1.0
B)-2.0
C)2.0
D)0.5
E)-0.5

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The Answer of A drop in the price of gasoline from $1.75 to $1.25 per litre causes purchases of cars to rise from 20 000 to 40 000.The numerical value of the cross-price elasticity between these two goods is therefore:
A)-1.0
B)-2.0
C)2.0
D)0.5
E)-0.5

A Drop in the Price of Gasoline from $1