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.

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.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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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.

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