1. The Institute of Transport Economics produced a report (TOI, 2018) on the demand for new automobiles in Norway. According to their analysis, the market for plug-in hybrid electric cars (PHEVs) is the most price elastic segment of the passenger car market (with a price elasticity of demand estimated at -1.72). When considering the demand for gasoline cars, the corresponding price elasticity of demand was estimated at -1.08. In which of the two markets (plug-in hybrid electric cars and gasoline cars), would you anticipate to observe greater price volatility? Explain your answer, using relevant diagrams to support your discussion. The demand for new automobiles in Norway - a BIG model analysis

https://www.toi.no/getfile.php/1349130-1542283560/Publikasjoner/T%C3%98I%20rapporter/2018/1665-2018/1665-2018-sum.pdf#:~:text=The%20cross%20demand%20elasticities%20of,elasticity%20comes%20out%20at%20%E2%80%931.27