Posted by **Econo-missed** on Saturday, November 1, 2008 at 4:21pm.

The coefficient of the price of gasoline in the regression of the quantity demanded of automobiles (in millions of units) on the price of gasoline (in dollars) and other variables is -14. (a) calculate the cross price elasticity of demand between automobiles and gasoline at the gasoline $ 1 per gallon and sales of automobiles of 8 (million units).

(b) What would be the cross price elasticity of demand between automobiles and gasoline if sales of automobiles declined from 8 to 6 with an increase in the gasoline price from $ 1 to $ 1.20 per gallon?

## Answer This Question

## Related Questions

- home economics - Suppose that 200 gallons of gasoline are demanded at a ...
- managerial economics - Qd=15.0-0.2P where Qd is annual quantity demanded in ...
- economics - Suppose the supply and demand for milk is described by the following...
- Calculus - The demand function for the Luminar desk lamp is given by the ...
- Economics - As price falls along the elastic portion of a linear demand curve, ...
- economics - 3.Determine if the demand for the following products is price ...
- Economics - 3. Determine if the demand for the following products is price ...
- !math (6) - The quantity demanded x (in units of a hundred) of the Mikado ...
- !math (6) - The quantity demanded x (in units of a hundred) of the Mikado ...
- *math (6) - The quantity demanded x (in units of a hundred) of the Mikado ...

More Related Questions