Show the change in the market for electric cars that is consistent with the following statement: "When the price of electric car
s is expected to rise in the near future, the present price of electric cars rises."
1 answer:
Price expectations about the future is another determinant of demand.
Explanation:
For example, An increase in the expected future price of electric cars may increase current demand for electric cars.
Individuals would naturally want to stock up more of electric cars in anticipation of an increase in their prices.
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Answer:
-4 units
Explanation:
Using the midpoint method, Blake's income elasticity of demand for generic potato chips is given by the change in demand (D) multiplied by his average income (I), divided by the change in income multiplied by the average demand:
Blake's income elasticity of demand is -4 units.