n 2019, 360,000 electric vehicles (EVs) were sold in the United States. Show your formula and calculation steps. a. Suppose the average price of these cars was $40,000. Calculate price elasticity of demand if a $2,000 tax credit caused an increase in sales by 20,000 EVs. b. Calculate cross-price elasticity if a 20 percent increase in the price of gasoline caused an increase in sales of EVs by 30,000.
n 2019, 360,000 electric vehicles (EVs) were sold in the United States. Show your formula and calculation steps. a. Suppose the average price of these cars was $40,000. Calculate price elasticity of demand if a $2,000 tax credit caused an increase in sales by 20,000 EVs. b. Calculate cross-price elasticity if a 20 percent increase in the price of gasoline caused an increase in sales of EVs by 30,000.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 12CQ: Jills Sausage Dog Stand projects the following demand for Jills sausage dogs: a. Calculate the price...
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In 2019, 360,000 electric vehicles (EVs) were sold in the United States. Show your formula and calculation steps.
a. Suppose the average price of these cars was $40,000. Calculate
b. Calculate cross-price elasticity if a 20 percent increase in the price of gasoline caused an increase in sales of EVs by 30,000.
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