5 Questions
What is the quantity demanded of gasoline in 2021?
101,000 litres
What was the average household income in the hypothetical economy?
$95,000
Based on the data in Table 4-5, what is the cross-price elasticity of demand for gasoline in terms of transit passes?
-0.33
If the price of gasoline increases to $1.10 per litre in 2021, what would be the expected change in quantity demanded of gasoline?
Increase to 103,000 litres
In the hypothetical economy, if the price of transit passes decreases, what is the expected impact on the quantity demanded of gasoline?
Increase
Test your understanding of cross-price elasticity of demand using a hypothetical economy data. Analyze the relationship between the price of gasoline and the quantity demanded of transit passes to determine the elasticity value and relationship between the two goods.
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