Decisions for Tomorrow In 2019, 360,000 electric vehicles (EVs) were sold in the United States. Instructions: Round your responses to one decimal place. a. Suppose the average price of these cars was $35,000. Calculate price elasticity of demand if a $2.000 tax credit caused an increase in sales by 25,000 EVs. b. Calculate cross-price elasticity if a 20 percent increase in the price of gasoline caused an increase in sales of EVS by 32,000.

Decisions for Tomorrow In 2019, 360,000 electric vehicles (EVs) were sold in the United States. Instructions: Round your responses to one decimal place. a. Suppose the average price of these cars was $35,000. Calculate price elasticity of demand if a $2.000 tax credit caused an increase in sales by 25,000 EVs. b. Calculate cross-price elasticity if a 20 percent increase in the price of gasoline caused an increase in sales of EVS by 32,000.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 1SCQ: From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand...

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