Business, 16.06.2020 20:57 taniyahbenyamin2

Analyze gasoline price hike statistics in the following scenario. In June 2008, the U. S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from 1 million barrels to 800,000 barrels. No viable substitute has been created to replace gasoline. In a two-page paper, address the following. a. Calculate the price elasticity of demand for gasoline.
b. Calculate the elasticity of supply using the information provided.
c. Calculate the changes in consumer and producer surplus.
d. Because there is no viable substitute for gasoline at this time, what can you say about the cross-elasticity and income elasticity of supply and e) demand for gasoline? Explain your answer and demonstrate clear, insightful critical thinking.
f. Is the demand for gasoline elastic, inelastic, perfectly elastic or inelastic, or unit elastic?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 02:00

Keshawn used to work for an it company in baltimore, but lost his job when his company decided to use workers in new delhi instead. this is an example of:

Answers: 1

Answer

Business, 22.06.2019 10:30

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.

Answers: 2

Answer

Business, 22.06.2019 17:10

Calculate riverside’s financial ratios for 2014. assume that riverside had $1,000,000 in lease payments and $1,400,000 in debt principal repayments in 2014. (hint: use the book discussion to identify the applicable ratios.)

Answers: 3

Answer

Business, 22.06.2019 20:30

Considered alone, which of the following would increase a company's current ratio? a. an increase in net fixed assets.b. an increase in accrued liabilities.c. an increase in notes payable.d. an increase in accounts receivable.e. an increase in accounts payable.

Answers: 3

Answer

You know the right answer?

Analyze gasoline price hike statistics in the following scenario. In June 2008, the U. S. retail gas...

Questions