The Cross-Price Elasticity of the Demand for Gasoline-Powered Cars with Respect

question 17

Multiple Choice

The cross-price elasticity of the demand for gasoline-powered cars with respect to the prices of gasoline is -0.71. Suppose that the price of gasoline increases from 2 to 2.10 euros per liter. How would that affect the demand for gasoline-powered cars?

• A) Reduce by 0.71%.
• B) Increase by 3.55%.
• C) Increase by 5%.
• D) None of the above.

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Definitions:

Thyroid Cartilage

The largest cartilage in the larynx, often more prominent in males and commonly known as the Adam's apple, offering protection and supporting vocal function.

Glottis

The part of the larynx consisting of the vocal cords and the slit-like opening between them, playing a key role in producing sounds.

Epiglottis

A cartilage structure shaped like a leaf, positioned behind the tongue, that seals the windpipe while swallowing to stop food from getting into the breathing passage.

Nasal Vestibule

The frontmost part of the nasal cavity, lined with skin and containing hair follicles, that filters larger particles from inhaled air.