Saturday, June 07, 2008

Unit 1: Cross elasicity of demand: 4x4's

This BBC clip explains the change in car buying by UK car buyers in response to rising fuel prices
http://news.bbc.co.uk/1/hi/business/7438087.stm

This Ch4 clip shows the effect on Hummer sales

http://link.brightcove.com/services/link/bcpid1184614595/bctid1588489570

a) Explain how the concept of cross elasticity of demand can be used to explain the changing demand for (i) 4x4's such as the Hummer and (ii) smaller fuel efficient cars

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