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3. An increase in gasoline prices from 2.1 Dhs to 2.5 Dhs per litre resulted in a decrease of automobile use from 950,000 to 920,000 trips. Estimate the likely impact of an increase in gasoline price from 2.5 Dhs to 3.0 Dhs. Solve this problem using the three alternative measures of elasticity.

3. An increase in gasoline prices from 2.1 Dhs to 2.5 Dhs per litre resulted in a decrease of automobile use from 950,000 to 920,000 trips. Estimate the likely impact of an increase in gasoline price from 2.5 Dhs to 3.0 Dhs. Solve this problem using the three alternative measures of elasticity.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3. An increase in gasoline prices from 2.1 Dhs to 2.5 Dhs per litre resulted in a decrease of automobile use from 950,000 to 920,000 trips. Estimate the likely impact of an increase in gasoline price from 2.5 Dhs to 3.0 Dhs. Solve this problem using the three alternative measures of elasticity.
Transcribed Image Text:3. An increase in gasoline prices from 2.1 Dhs to 2.5 Dhs per litre resulted in a decrease of automobile use from 950,000 to 920,000 trips. Estimate the likely impact of an increase in gasoline price from 2.5 Dhs to 3.0 Dhs. Solve this problem using the three alternative measures of elasticity.
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