Problem
Suppose the annual demand function for the Honda Accord is Qd 430 - 10PA + 10PC - 10PG, where PA and PC are the prices of the Accord and the Toyota Camry respectively (in thousands), and PG is the price of gasoline (per gallon). What is the elasticity of demand of the Accord with respect to the price of a Camry when both cars sell for $20,000 and fuel costs $3 per gallon? What is the elasticity with respect to the price of gasoline?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.