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:

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