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Price elasticity of demand for ford sport-utility vehicles

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Reference no: EM131185900

Do you think the price elasticity of demand for Ford sport-utility vehicles (SUVs) will increase, decrease, or remain the same when each of the following events occurs? Explain your answer.

a. Other car manufacturers, such as General Motors, decide to make and sell SUVs.

b. SUVs produced in foreign countries are banned from the American market.

c. Due to ad campaigns, Americans believe that SUVs are much safer than ordinary passenger cars.

d. The time period over which you measure the elasticity lengthens. During that longer time, new models such as four-wheel-drive cargo vans appear

Reference no: EM131185900

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