The Fact That the Cross-Price Elasticity of Natural Gas with Respect

question 33

Multiple Choice

The fact that the cross-price elasticity of natural gas with respect to the price of fuel oil is 0.4 implies that

• A)natural gas and fuel oil are substitutes.
• B)natural gas is a normal good.
• C)the quantity of natural gas demanded will decrease by 1.6% when the price of fuel oil decreases by 4%.
• D)both a and c

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Definitions:

Mineral Rights

The legal rights to exploit and use minerals found beneath the surface of a parcel of land, which can be separated from the land's surface rights.

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Lanham Act

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