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Tires Unlimited Inc. finds the following elasticities of demand for its tires: Cross price elasticity of demand for tires with respect to price of batteries
- Tires Unlimited Inc. finds the following elasticities of demand for its tires:
- Cross price elasticity of demand for tires with respect to price of batteries = 0.45
- Cross price elasticity of demand for tires with respect to price of brake jobs = 0.70
- Cross price elasticity of demand for tires with respect to price of an oil change = 0.002
- (Own-) price elasticity of demand for tires (in absolute value) = 6.0
If Tires Unlimited makes the following changes, how will this affect the volume of tires sold (in percentage terms)? Please provide calculations
- The price of batteries is decreased by 5%
- The price of brake jobs is increased by 2%
- The price of an oil change is increased by 3%
- The price of tires is increased by 6%
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