In a Study of the Domestic Market Share of the Three

question 125

Essay

In a study of the domestic market share of the three major automobile manufacturers , , and in a certain country, it was found that of the customers who bought a car manufactured by , 75% would again buy a car manufactured by , 10% would buy a car manufactured by , and 15% would buy a car manufactured by . Of the customers who bought a car manufactured by , 90% would again buy a car manufactured by , whereas 5% each would buy cars manufactured by and , respectively. Finally, of the customers who bought a car manufactured by , 75% would again buy a car manufactured by , 5% would buy a car manufactured by , and 20% would buy a car manufactured by . Assuming that these sentiments reflect the buying habits of customers in the future model years, determine the market share that will be held by each manufacturer in the long run.
​
Please round your answers to the nearest tenth of a percent, if necessary.
​
__________ % manufactured by ​
__________ % manufactured by ​
__________ % manufactured by

---

Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods for which the opposite is true.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.

Income Elasticity

It quantifies the sensitivity of the quantity demanded for a good to a change in consumer incomes, highlighting how demand varies as income levels shift.