Gasoline and Motel Rooms Are Complements for Many Consumers

question 140

Multiple Choice

Gasoline and motel rooms are complements for many consumers.When the price of gasoline declines,consumers take longer vacations and rent more motel rooms.Therefore,the cross price elasticity between gasoline and motel rooms is

• A) positive.
• B) negative.
• C) less than one because neither is a luxury.
• D) more than one because both are luxuries.

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Definitions:

Matched Pairs Design

An experimental design in which each subject is paired with another subject with similar characteristics, except for the variable being tested.

Two-way Factor ANOVA

A statistical test used to determine the effect of two independent variables on a dependent variable, considering interactions between the two independent variables.

Replications

Repeating experiments or studies to ensure the results are consistent and reliable.

Null Hypothesis

A hypothesis that there is no significant difference or effect.