During the 1970s,OPEC's Output Restrictions Caused Gasoline Prices to Increase

question 63

Multiple Choice

During the 1970s,OPEC's output restrictions caused gasoline prices to increase sharply.Coincidentally,demand for gas-guzzling cars fell.A likely explanation for these observations is that gasoline and cars had a ________ elasticity of demand that was ________.

• A)cross; negative
• B)cross; positive
• C)income; negative
• D)income; positive
• E)price; negative

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Definitions:

Social Exchange

A theory in social science that suggests human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.

Proximity

The physical or psychological closeness between people, objects, or concepts, affecting relationships and interactions.

Friendships

A mutual relationship between two people that is built on trust, affection, and support.

Inversely Correlated

A relationship between two variables in which one variable increases as the other decreases.