Calculate price elasticity of demand for cars during period

Reference no: EM13683573

Between 2009 and 2010, the quantity of cars produced and sold decreased by 20%. Through the same period, the cost of gasoline increased by 20% and the price of cars increased by 5%. We know that the cross elasticity of demand of gasoline is -0.3.

Calculate the price elasticity of demand for cars during this period.

Reference no: EM13683573

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