Compute the price elasticity of demand for cars

Reference no: EM13853348

Between 2011 and 2012, the quantity of cars produced and sold decreased by 20%. During the same period, the price of cars increased by 5% and the cost of gasoline increased by 20%. We know that the cross elasticity of demand of gasoline is -0.3. Compute the price elasticity of demand for cars during this period.

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