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

[answerhappygod]

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 (a) 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 + 10a -4p. where p is
the price of Model z. Consider the follawing two
statements:
1. lf the average gasoline price a increases by $1. the
revenue-maximizing price p‘ increases by $X
2. If the average gasollne price a increases by $1. the demand
at the revenue-maximizing price （ie. D（p‘）） increases by a factor
of Y
What is X/Y?
A. 0.5
B. 1
C. 0.25
D. 0.125
E. 2