3. An increase in gasoline prices from 2.1 Dhs to 2.5 Dhs per litre resulted in a decrease of automobile use from 950,000 to 920,000 trips. Estimate the likely impact of an increase in gasoline price from 2.5 Dhs to 3.0 Dhs. Solve this problem using the three alternative measures of elasticity.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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3. An increase in gasoline prices from 2.1 Dhs to 2.5 Dhs per litre resulted in a
decrease of automobile use from 950,000 to 920,000 trips. Estimate the likely
impact of an increase in gasoline price from 2.5 Dhs to 3.0 Dhs. Solve this problem
using the three alternative measures of elasticity.
Transcribed Image Text:3. An increase in gasoline prices from 2.1 Dhs to 2.5 Dhs per litre resulted in a decrease of automobile use from 950,000 to 920,000 trips. Estimate the likely impact of an increase in gasoline price from 2.5 Dhs to 3.0 Dhs. Solve this problem using the three alternative measures of elasticity.
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