yes deifintely. in another sentence i suggested the same and i was confirmed last week my suggestion was accepted
No, in this case 'teuer' exclusively means 'expensive'. You can't use it in the sense of 'dear' here. 'Teuer' is used in the sense of 'dear' in expressions like 'jmd. lieb und teuer sein' (to be dear to someone) but that doesn't work here. [EDIT: This is incorrect, please scroll down a bit. I'll leave my comment here as it is because - I guess - I'm not the only non-native who makes this error]
Oh, that's interesting ;-) Thanks a lot, christian! OK, seems like the problem is not about German but my deficient knowledge of English ;-) I wasn't aware of the fact that you can use 'dear' in the sense of 'expensive' in English, too. So, sorry for the confusion my comments may have caused. Let me correct myself: If you use 'dear' in the sense of 'expensive' it should be fine as a translation of 'teuer' in this sentence.
I think it's more of a British usage. I don't hear it in the US. I occasionally use it, but only for my own amusement and only among people who know me well. ;-)
When it is used that way in North America I think it's most often used in expressions such as, "The Americans took Omaha beach, but the price they paid was dear."
"Dear" in the sense of expensive and "expensive" are both commonly used in Australia.
You are right. The second 's' in 'dieses' comes from the 'das' (Auto).