Question

there is hight cross elasticity of demand between old and new cars

Answer 1

Answer:

Demand for used cars is highly elastic. If a used car of the same make and model wasn’t substantially cheaper than the new version it’s fair to assume almost every consumer would choose the new car.

Demand for used cars is highly elastic. If a used car of the same make and model wasn’t substantially cheaper than the new version it’s fair to assume almost every consumer would choose the new car.The fact that a new car would sell at a 35–40% discount the second it’s driven off the lot suggests demand is highly elastic.

l hope you understand....✌️✌️

Answer 2

Answer:

Demand for used cars is highly elastic. If a used car of the same make and model wasn’t substantially cheaper than the new version it’s fair to assume almost every consumer would choose the new car.

The fact that a new car would sell at a 35–40% discount the second it’s driven off the lot suggests demand is highly elastic.