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Salvo and Huse (2013) found that roughly one-fifth of flexible-fuel (cars that can run on a mix of ethanol and gasoline) car owners choose gasoline

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Salvo and Huse (2013) found that roughly one-fifth of flexible-fuel (cars that can run on a mix of ethanol and gasoline) car owners choose gasoline when the price of gas is 20% above that of ethanol (in energy-adjusted terms) and, similarly, one-fifth of these motorists choose ethanol when ethanol is 20% more expensive than gasoline. What can you say about these pedple's tastes? Owners of flexible-fuel cars have preferences such that gasoline and ethanol are O A. normal goods. O B. unrelated. O C. imperfect substitutes. -2 O D. perfect complements. O E. perfect substitutes. IVE rig ng 5518

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