In Recent Years, the Prices of New Domestically Produced Cars

question 267

True/False

In recent years, the prices of new domestically produced cars have been falling.Suppose consumers respond by reducing their demand for used cars and mass transport services such as bus travel.This information suggests that the cross-price elasticity between new cars and used cars, and the cross-price elasticity between new cars and bus travel, are negative.

---

Definitions:

Case Study Method

A research approach that involves the detailed examination of a single instance or event: a case.

Social Workers

Professionals dedicated to helping individuals, families, and communities to cope with challenges and improve their well-being through a variety of services.

Social Exchange Theory

An analytical framework that suggests human relationships are transactions aiming to maximize one's benefits and minimize costs, grounded on principles of reciprocity and fairness.

Rational Behavior

implies making decisions based on logical reasoning, aiming for the most efficient outcome considering the available information.