A researcher estimated the Ep for autos in the U.S. is –1.2, while the Ei is 3.0. Next year, U.S. automakers intend to increase the average price of autos by 5%, and they expect consumers’ disposable income to rise by 3%.

Question

A researcher estimated the Ep for autos in the U.S. is –1.2, while the Ei is 3.0. Next year, U.S. automakers intend to increase the average price of autos by 5%, and they expect consumers’ disposable income to rise by 3%. 
A) If sales of domestically produced autos are 8 million this year, how many autos do you expect U.S. automakers to sell next year? 
B)Byy how much should domestic automakers increase the price of autos if they wish to increase sales by 5%?

Take a shot. what do you think