e. A decrease in the price of electricity from $5.75 to $5.25 per kilowatt hour causes an increase in the quantity demanded of electric cars from 520,000 to 1 million. The numerical value of cross-price elasticity is Electricity and electric cars are complementary products.

e. A decrease in the price of electricity from $5.75 to $5.25 per kilowatt hour causes an increase in the quantity demanded of electric cars from 520,000 to 1 million. The numerical value of cross-price elasticity is Electricity and electric cars are complementary products.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

e. A decrease in the price of electricity from $5.75 to $5.25 per kilowatt hour causes an increase in the quantity demanded of electric
cars from 520,000 to 1 million.
The numerical value of cross-price elasticity is
Electricity and electric cars are complementary products.
A

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