If the price of crude oil increases and the number of
people who own cars falls:
the equilibrium price of gasoline will decrease and
equilibrium quantity of gasoline will be uncertain.
the equilibrium price of gasoline will be uncertain and
equilibrium quantity of gasoline will increase.
the equilibrium price of gasoline will be uncertain and
equilibrium quantity of gasoline will decrease.
the equilibrium price of gasoline will increase and
equilibrium quantity of gasoline will decrease.
Question 3
2 pts
On some days Gustav makes his own salad for
lunch, preferring to use either iceberg or romaine
lettuce, topped off with lots of fresh tomatoes. For
Gustav, the cross-price elasticity of demand for
iceberg lettuce with respect to romaine lettuce is
______, and the cross-price elasticity of demand for
iceberg lettuce with respect to tomatoes is
zero; positive
negative; zero
negative; positive
positive; negative