I'm really confused

4% Resources Hint Elasticity - End of Chapter Problem Do you think the price elasticity of demand for Ford sport-utility vehicles (SUVs) will increase, decrease, or remain the same when each of the following events occurs? Explain your answers. a. Other car manufacturers, such as General Motors, decide to make and sell SUVs. The answer above is correct because b. SUVs produced in foreign countries are banned from the American market. hp Elasticity - End of Chapter Problem Do you think the price elasticity of demand for Ford sport-utility vehicles (SUVs) will increase, decrease, or remain the same when each of the following events occurs? Explain your answers. a. Other car manufacturers, such as General Motors, decide to make and sell SUVs. decrease increase remain the same consumers now have more substitutes from which to choose. to be successful, the new entrants in the SUV market will be priced lower than the Ford SUVs. consumers will become confused about the relative merits of the SUVs as more choices become available. brand loyalty will make it virtually impossible to convince consumers to switch to GM's or other's SUVs. hpThe answer above is correct because b. SUVs produced in foreign countries are banned from the American market. The answer above is correct because hp b. SUVs produced in foreign countries are banned from the American market. decrease remain the same increase there is a 'buy American' attitude in the SUV market. Ford SUVs are typically priced lower than imported SUVs, so they take up less of a consumer's budget. foriegn SUVs will become exotic and more desirable since they now cannot be purchased. there will be fewer substitutes available for consumers. hp