question archive Assume the price and income elasticities of demand for cars are EpEp = -0
Assume the price and income elasticities of demand for cars are EpEp = -0
Subject:EconomicsPrice:2.88 Bought3
Assume the price and income elasticities of demand for cars are EpEp = -0.52 and EyEy = 3.2. In the coming year, car prices are expected to rise by 2% and income by 8%. Based on this information, the cars' sale volume is expected to:
a) fall by 0.52%.
b) increase by 24.56%.
c) increase by 5%.
d) fall by 3.04%.
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