After reading the Bloomberg article “Recession Generation Opts to Rent Not Buy Houses to Carsâ€Â
use the five determinants of price elasticity of demand (PED) to characterize the PED for new houses and
new cars. How does the new hourly car rental business affect the PED for cars? How has the recession
affected the PED for cars and housesâ€â€especially for young adults? Use a graph to illustrate one of your
answers (showing changes in PED for housing or cars).
Graphs can either be drawn using a program
(Word or Paint), or you can draw the graphs by hand and scan them into your computer.
All work must be submitted electronically.
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