The price elasticity of new automobile purchases is about 1.2. This implies that an increase of $1,000 on a $10,000 automobile will a. reduce the number of autos sold by approximately 12 percent. O b. reduce the number of autos sold by approximately 1.2 percent. Oc increase consumer expenditures on autos by approximately 12 percent. Od increase the consumer expenditures on autos by approximately 1.2 percent

The price elasticity of new automobile purchases is about 1.2. This implies that an increase of $1,000 on a $10,000 automobile will a. reduce the number of autos sold by approximately 12 percent. O b. reduce the number of autos sold by approximately 1.2 percent. Oc increase consumer expenditures on autos by approximately 12 percent. Od increase the consumer expenditures on autos by approximately 1.2 percent

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 4PA: A price change causes the quantity demanded of a good to decrease by 30 percent, while the total...

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