question archive Assuming that the price elasticity of demand for automobiles in the United States is 1
Assuming that the price elasticity of demand for automobiles in the United States is 1
Subject:EconomicsPrice:2.88 Bought3
Assuming that the price elasticity of demand for automobiles in the United States is 1.2 and that the income elasticity of demand is 3:
a) What would be the effect of a 5 percent increase in auto prices on the number of autos demanded?
b) What would be the effect of a 2 percent increase in income on the number of autos demanded?
