In the light of Saudi vision 2030, Saudi government increased gasoline prices more than once, in...
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In the light of Saudi vision 2030, Saudi government increased gasoline prices more than once, in order to conserve energy and correct domestic energy prices to be an alignment with international market prices. The table below shows the changes in gasoline prices and consumption in the years (2015-2018): Years consumption of gas in million barrels Prices of liter of gas in SAR Prices of barrels of oil in SAR. barrel 190.932 liters 2015 203.98 0.60 114.56 2016 203.37 0.90 171.8 2017 208.00 0.90 171.83 2018 2. Is demand for gasoline elastic or inelastic? Explain? 194.49 2.04 389.5 1. Calculate the price elasticity of demand for gasoline over an interval (2015:2018)? 3. What is the effect of gasoline prices increases on the demand for automobiles? Is cross price elasticity between automobiles and gasoline prices positive or negative? Explain? 4. What are the factors affecting price elasticity of demand for gasoline? 5. What is the effect of gasoline prices on the government income? How much of revenue was generated in 2018 in comparison to 2015? In the light of Saudi vision 2030, Saudi government increased gasoline prices more than once, in order to conserve energy and correct domestic energy prices to be an alignment with international market prices. The table below shows the changes in gasoline prices and consumption in the years (2015-2018): Years consumption of gas in million barrels Prices of liter of gas in SAR Prices of barrels of oil in SAR. barrel 190.932 liters 2015 203.98 0.60 114.56 2016 203.37 0.90 171.8 2017 208.00 0.90 171.83 2018 2. Is demand for gasoline elastic or inelastic? Explain? 194.49 2.04 389.5 1. Calculate the price elasticity of demand for gasoline over an interval (2015:2018)? 3. What is the effect of gasoline prices increases on the demand for automobiles? Is cross price elasticity between automobiles and gasoline prices positive or negative? Explain? 4. What are the factors affecting price elasticity of demand for gasoline? 5. What is the effect of gasoline prices on the government income? How much of revenue was generated in 2018 in comparison to 2015?
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Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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