question archive Suppose that the estimated income elasticity of demand for cars is 2
Subject:EconomicsPrice:2.88 Bought3
Suppose that the estimated income elasticity of demand for cars is 2.5 and that the price elasticity is estimated to be -1.2. If the economy is projected to go into a mild recession with a drop in incomes of 5%, what price change would offset this expected drop in sales?
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