Price elasticities have been found to be smaller for subcompact and compact
vehicles compared to larger models and for two-vehicle households compared to
one-vehicle households. The cross-section literature also found income elasticities
greater than +1.00 and, in some cases, greater than +5.00. A 1985 study estimated
an income elasticity of +1.96 for a Chevy Chevette and +7.49 for a Mercedes 280S,
indicating a substantial consumer response for these models to changes in income.
Automobile demand by households owning one vehicle tended to be less sensitive
to changes in income than by two-vehicle households.