Price elasticity of demand for GM cars is -2.0Cross-price elasticity between GM cars and those of its competitors is +0.5Cross-price elasticity between GM cars and gasoline is -0.3

Price elasticity of demand for GM cars is -2.0Cross-price elasticity between GM cars and those of its competitors is +0.5Cross-price elasticity between GM cars and gasoline is -0.3

A.Income elasticity of demand for GM cars is +1.6B. The price of competitors cars are due to rise by 8%

C. Consumer income rises by 2%

D. The price of gasoline is due to fall by 20%

E. The net effect to demand

Price elasticity of demand for GM cars is 2 0 Cross price elasticity