Consider the Following Data for a Hypothetical Economy TABLE 4- 5
-Refer to Table 4- 5

question 65

Multiple Choice

Consider the following data for a hypothetical economy. $\begin{array}{|l|l|l|l|l|l|}\hline \text { Year } &\begin{array}{l}\text { Average } \\\text { Household } \\\text { Income }(\$) \end{array} & \begin{array}{l}\text { Price of Transit } \\\text { Passes }\end{array} & \begin{array}{l}\text { Qty } \\\text { Demanded of } \\\text { TransitPasses }\end{array} & \begin{array}{l}\text { Price of } \\\text { Gasoline } \\\text { (\$litre) }\end{array} & \begin{array}{l}\text { Qty Demanded } \\\text { of G asoline } \\\text { (millions of litres) }\end{array} \\\hline 2009 & 80000 & 60 & 99000 & 0.95 & 1940 \\\hline 2010 & 80000 & 60 & 101000 & 1.05 & 2060 \\\hline\end{array}$ TABLE 4- 5
-Refer to Table 4- 5. The cross- price elasticity of demand for transit passes in terms of the price of gasoline is _. We can therefore conclude that these two goods are .

• A) 0.5; substitutes
• B) 0.33; substitutes
• C) 0.2; substitutes
• D) 5.0; complements
• E) 0.2; complements

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Definitions:

Selling Expenses

Costs that are directly tied to the selling of goods and services, such as advertising, sales staff salaries, and commissions.

Budgeted Receipts

Estimated amounts of money expected to be received during a specified budget period.

Wholesaler

An intermediary in the distribution process that buys products in bulk and resells them to retailers or other businesses.

Industrial Goods

Products used in the production of other goods or services, not intended for direct consumption by consumers.