Assume That the Price and Income Elasticities of Demand for Luxury

question 29

Multiple Choice

Assume that the price and income elasticities of demand for luxury cars are EP = -0.52 and EY = 3.2 respectively. In the coming year, car prices are expected to rise by 2 percent and income by 8 percent. Based on this information, sales of cars are expected to _____.

• A) fall by 0.52%
• B) increase by 24.56%
• C) increase by 5%
• D) fall by 3.04%
• E) fall by 32.84%

---

Definitions:

Oral Antiviral Agent

A medication taken by mouth to prevent or treat viral infections by inhibiting the development of the virus.

Tinea Capitis

A fungal infection of the scalp, commonly known as ringworm, which can cause hair loss and scaling.

Oral Griseofulvin

A medication taken by mouth used to treat fungal infections of the skin, hair, and nails by inhibiting fungal cell growth.

Therapeutic Management

The systematic and strategic approach to treating a medical condition or disease to improve patient outcomes.