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I am writing a paper on price elasticity. I am to select a product and state whether it has price elasticity or price inelasticity. I have selected the Infiniti M35 car. The starting price for year 2008 is $43,050, year 2007 starting price was $41,450, and year 2006 starting price was $42,700. What would be the impact of raising the price of this vehicle? What would be the impact of lowering price?
Using this information about the Infiniti M35 from above, I am to determine substitutes and compliments. I am to address these components:
a)What has happened to the price and quantity of the substitutes and complimentary goods/ services for your selected product over the last year?b)How have price adjustments impacted the demand for the selected product? That is what happens to the substitutes or complementary goods as a result of a price change?
Could you point me to reference material also.
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