6.4 Salvo and Huse (2012) found that roughly onefifth of flexible-fuel (cars that can run on a...
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6.4 Salvo and Huse (2012) found that roughly onefifth of flexible-fuel (cars that can run on a mix of ethanol and gasoline) car owners choose gasoline when the price of gas is 20% above that of ethanol
(in energy-adjusted terms) and, similarly, one-fifth of motorists choose ethanol when ethanol is 20%
more expensive than gasoline. What can you say about these people’s tastes?
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