1.3. Henry Ford famously rna s-produced cars at the beginning of the twentieth century, starting Ford Motor Company. He made millions because mass production made cars cheap to make, and he passed some of the savings to the consumer in the form of a low price.

Cars became a common ight in the United State thereafter. Keeping total revenue and it relationship with price in mind, do you expect the demand for cars to be elastic or inelastic given the story of Henry Ford?

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