Explain whether price elasticity of demand is likely to be elastic or inelastic. Base your answer on three determinants of elasticity:
a) Determine whether there are any substitute products for this good. Name at least 2-3. Are they close to the products of Toyota Company?
b) Determine the approximate proportion of income spent on the Toyota cars.
c) Consider the necessity of the good. Compare with several other goods purchased by an average consumer.