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If 0.98 is the cross elasticity of demand for Gasoline with respect to Diesel, Gasoline is...

If 0.98 is the cross elasticity of demand for Gasoline with respect to Diesel,

Gasoline is a compliment to Diesel

Gasoline  is a substitute to Diesel

Gasoline  is a normal good

Gasoline is an inferior good
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Answer #1

Cross price elasticity = 0.98

As the cross price elasticity is positive in value,it means that gasoline and Diesal are substitute goods

option(B)

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