6.4 Salvo and Huse (2013) found that roughly one-fifth of owners of flexible-fuel cars (cars that can

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6.4 Salvo and Huse (2013) found that roughly one-fifth of owners of flexible-fuel cars (cars that can run on a mix of ethanol and gasoline) 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? Do they view ethanol and gasoline as perfect substitutes?

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Microeconomics Theory And Applications With Calculus

ISBN: 9780135183779

5th Edition

Authors: Jeffrey M. Perloff

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Question Posted: Nov 15, 2024 05:00 AM

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6.4 Salvo and Huse (2013) found that roughly one-fifth of owners of flexible-fuel cars (cars that can

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Microeconomics Theory And Applications With Calculus

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