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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