Consider a fictitious company, Teslala, that produces a single type of electronic vehicle, Model Z. The demand for Model

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Consider A Fictitious Company Teslala That Produces A Single Type Of Electronic Vehicle Model Z The Demand For Model 1 (234.22 KiB) Viewed 82 times

Consider a fictitious company, Teslala, that produces a single type of electronic vehicle, Model Z. The demand for Model Z depends on the gasoline price (q) because customers tend to purchase an electronic vehicle as a substitute for vehicles that run on gasoline when the gasoline price increases. The demand for Model Z is estimated as D(p) = 180 + 10g - 4p, where p is the price of Model Z. Consider the following two statements: 1. If the average gasoline price q increases by $1, the revenue-maximizing price p* increases by $X 2. If the average gasoline price q increases by $1, the demand at the revenue- maximizing price (i.e., D(p*)) increases by a factor of Y What is X/Y? O 0.5 1 0.25 O 0.125 O2