If the price elasticity of demand for gasoline is 0.3 and the current price is $3.20 per

Question:

If the price elasticity of demand for gasoline is 0.3 and the current price is $3.20 per gallon, what rise in the price of gasoline will reduce its consumption by 10 percent?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

See More Books

Question Posted: Apr 12, 2016 07:12 AM

See More Questions

U.S. drivers are ranked as the least sensitive to changes in the price of gasoline. For example, if the price rose from $3 to $4 per gallon and stayed there for a year U.S. purchases of gasoline...
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%....
1. To compute the price elasticity of demand, we divide the percentage change in_______ by the percentage change in _______and then take the _______value of the ratio. 2. If a 10 percent increase in...
Refer to the bolt strength problem 17.47. Assume = 6,050 and 5 100. Use the following 24 individual bolt strength observations to answer the questions posed. (a) Prepare a histogram and/or normal...
During 2015, Liberty Company has the following inventory transactions. Because trends change frequently, Liberty estimates that the remaining six units have a current replacement cost at December 31...
Working on a system to collect solar energy, you are trying to move some charged particles through the open interior of a uniformly charged ring. A colleague vaguely remembers Newton's and...
An engineering student has 6 different ball bearings and 9 different gears. In how many ways can 3 ball bearings and 3 gears be selected for an experiment on friction in machine parts?
Budget Tax Service, Inc prepares tax returns for small businesses. The cost of preparing 800 tax returns in the prior year was: Direct labor ............ $320,000 Variable overhead ..............
In what ways do decentralized organizational structures, characterized by autonomous decision-making units and distributed authority, foster agility and innovation in response to rapidly evolving...
1. How did ABI handle forecast risk? 2. Were ABIs Stanhope site costs in Table 2 derived by a top-down or bottom-up process? Why? 3. What are the answers to Steve Whites questions? 4. What other...
A rise in the price of a certain commodity from $20 to $25 reduces quantity demanded from 25,000 to 10,000 units. Calculate the price elasticity of demand.
For each of the product pairs given in Test Yourself Question 7, what would you guess about the products' cross elasticity of demand? a. Do you expect it to be positive or negative? b. Do you expect...
A 2.0-m-diameter water droplet is moving with a speed of 1.0 mm/s in a 20@mm@long box. a. Estimate the particles quantum number. b. Use the correspondence principle to determine whether quantum...
Gold Standard System & Stability-Continuity of World Payments. Give quantitative data examples with references to explain the concepts.
please find 8-10 sources about the following topics -monetary policy -fiscal policy -supply-side policy -inflation -how inflation has been tackled in the past? -Applications in banks for monetary,...
Use a diagram and words to explain the social benefit of a government program to supply social housing. Assume the market for housing is efficient and the increase in supply changes the price of...
Discuss your written literature review on a topic: evaluating the success rate of the United Southeast Asian American Program at Fresno City College Please include introduction: restate thesis Orient...
The performance of the database can be optimized by using a well-designed A View. B Query. C Table. D Index.
The following table gives the median age at the first marriage of women in the United States for some selected years. (a) Plot the data using t = 50 for 1950, and so on. (b) Would a linear or...
The maximum pressure that can be developed for a certain fluid power cylinder is 15.0 MPa. Compute the required diameter for the piston if the cylinder must exert a force of 30 kN.
Show on a graph how capital formation shifts the production function. Use this graph to show that capital formation increases labor productivity. Explain in words why labor is more productive when...
Explain the difference between investment as the term is used by most people and investment as defined by an economist.
What would the circular flow diagram look like in an economy with no government? Draw one for yourself.
Given the matrix A -3 0 -14 3 4 6 9115 7701 a) Determine all solutions of the homogeneous system Ax = 0. b) Determine if the columns of A span R.
Summarize each data source and include them for substance abuse and alcohol in the military. Analyze each data source for substance abuse and alcohol in the military for trustworthiness and accuracy....
On January 1, 2023, Holland Corporation paid $7 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent...

If the price elasticity of demand for gasoline is 0.3 and the current price is $3.20 per

Question:

Step by Step Answer:

The elasticity is the percentage change in quantity divided ...View the full answer

Economics Principles and Policy

Students also viewed these Economics questions