Between 2007 and 20008 the quality of automobiles produced


Between 2007 and 20008, the quality of automobiles produced and sold declined by 10 percent. During this period the real price of cars increased by 5 percent, real income levels increased by 2 percent, and the real cost of gasoline declined by 20 percent. Knowing that the income elasticity of demand is +1.5 and the cross price elasticity of gasoline and cars is -0.3, compute the price elasticity of demand for automobiles during this period

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Business Economics: Between 2007 and 20008 the quality of automobiles produced
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