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SUV's - cross elastic?

Read the article High cost of fuel drives people into smaller cars and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.


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Question 1

Describe the main factors that led to a fall in demand for SUVs.

Question 2

Explain the following statement: Petrol and SUV's are complements. SUV's and Hybrids are substitutes.

Question 3

What strategies could the car manufacturers adopt to try to reduce the cross elasticity of demand for SUVs with respect to the fuel price?

Question 4

Explain the external costs that arise from sales of SUVs.