The cross price elasticity between gasoline and driving :___________.
a. is positive so they are complements.
b. is negative so they are substitutes
c. is positive so they are substitutes.
d. is negative so they are complements

Respuesta :

Answer:

d. is negative so they are complements

Explanation:

The gasoline and driving are complement to each other that means if the price of the gasoline is increased so there should be the less pricing as it will become costlier now and if the price of the gasoline is decreased so there is more driving. It has an inverse relationship between two goods

So, the cross price elasticity of goods would be negative

Hence, the option d is correct