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

question 62

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:

Hypertrophy

An increase in the size of an organ or tissue through the enlargement of its cells.

-trophy

A suffix indicating growth, development, or nourishment of tissues or organs.

-cide

The suffix "-cide" is used to form nouns indicating the act of killing or the agent that kills the entity specified by the root (e.g., insecticide, homicide).

Suffix

A morpheme added at the end of a word to form a derivative or to indicate grammatical properties.