Impact of the gasoline price increase on the demand for cars

Reference no: EM13683612

In 2009 - 2010, the quantity of cars produced and sold decreased by 20%. Through 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. Calculate the impact of the gasoline price increase on the demand for cars

Reference no: EM13683612

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Impact of the gasoline price increase on the demand for cars : In 2009 - 2010, the quantity of cars produced and sold decreased by 20%. Through 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. Calculate ..

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