1 Find the price elasticity of demand if the market price is of a barrel of...
1 Find the price elasticity of demand if the market price is of a barrel of oil changes from $10 to $20 and the demand changes from 1000m barrels to 900 barrels.
Homework Answers
Answer: Price elasticity of Demand = ((q1-q0)/(q1+q0))/((p1-p0)/(p1+p0))
Where, q0 = initial quantity
q1 = new quantity
p0 = initial price for quantity q0
p1 = new price for quantity q1
Given : p0 = $10, p1 = $20
q0 = 1000, q1 = 900
Therefore, Price elasticity of demand = ((900-1000)/(900+1000))/((20-10)/(20+10))
= -0.157
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1 Find the price elasticity of demand if the market price is of
a barrel of...
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EQUILIBRIUM CALCULATOR: MARKET FOR HEATING OIL PRICE (Dollars per barrel] 80 Price of Heating Oil 30 Dollars per barrel) Quantity Demanded Thousands of barrels/day] Shortage 70 100 Quantity Supplied 60 60 Thousands of barrels/day) 50 40 Surplus Thousands of barrels/day) Thousands of barrels/day) 40 DEMAND SHIFTERS SUPPLY SHIFTERS 30 Price of Natural Gas [Dollars per 1,000 cubic ft.] Cost of Crude Oil Per barrel of heating oil] 10 25 20 Price of an Oil Furnace [Dollars per furnace] Cost of...
(Figure: The Demand Curve for Oil) Use Figure: The Demand Curve for Oil. The price elasticity...
(Figure: The Demand Curve for Oil) Use Figure: The Demand Curve
for Oil. The price elasticity of demand between $20 and $21, by the
midpoint method, is approximately:
0.21.
0.49.
4.9.
2.1.
Figure: The Demand Curve for Oil Price of oil (per barrel) 9.9 10 Quantity of oil (millions of barrels per day)
In the diagram what is the elasticity of demand for oil? Optional Answers: 1. -1 2....
In the diagram what is the elasticity of demand for oil?
Optional Answers:
1. -1
2. infinity
3. 1
4. 0
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Elasticity Submit Assignment nouncements ignments cussions Due Thursday by 11:59pm Points 10 Submitting a text entry...
Elasticity Submit Assignment nouncements ignments cussions Due Thursday by 11:59pm Points 10 Submitting a text entry box or a file upload Available Mar 23 at 10am - Mar 26 at 11:59pm 4 days des ple Solve the following two problems and show all of your work. Provide your answers on word document and submit online. UI abus 1. Global use of crude oil fell from 64million barrels per day in 1980 to 58 million barrels per day in 1982. During...
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Please chose the correct answer, and explain why. Thank you so much! Question 7 1 pts...
Please chose the correct answer, and explain why. Thank you so
much!
Question 7 1 pts In the graph below, the Pigovian tax Price Market for Oil SupplyTax Etax Supply - EM Demand 20 25 millions of barrels of oil O has no impact on the quantity of oil sold. decreases the quantity of oil sold by 20 million barrels. increases the quantity of oil sold by 20 million barrels. decreases the quantity of oil sold by 5 million barrels....
3. Understanding changes in equilibrium price and quantity Suppose you are an analyst in the oil...
3. Understanding changes in equilibrium price and quantity Suppose you are an analyst in the oil refinery industry and are responsible for estimating the equilibrium price and quantity of home heating oil. To do so, you must consider factors that can affect the supply of and demand for heating oil. Determinants of the demand for heating oil include household income, the price of an oil furnace (a complementary good for heating oil), and the price of natural gas (a substitute...
7. Suppose that you have been hired as an economist by OPEC and given the following...
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EQUILIBRIUM CALCULATOR: MARKET FOR HEATING OIL PRICE (Dollars per barrel] 80 Price of Heating Oil 30 Dollars per barrel) Quantity Demanded Thousands of barrels/day] Shortage 70 100 Quantity Supplied 60 60 Thousands of barrels/day) 50 40 Surplus Thousands of barrels/day) Thousands of barrels/day) 40 DEMAND SHIFTERS SUPPLY SHIFTERS 30 Price of Natural Gas [Dollars per 1,000 cubic ft.] Cost of Crude Oil Per barrel of heating oil] 10 25 20 Price of an Oil Furnace [Dollars per furnace] Cost of...
(Figure: The Demand Curve for Oil) Use Figure: The Demand Curve
for Oil. The price elasticity of demand between $20 and $21, by the
midpoint method, is approximately:
0.21.
0.49.
4.9.
2.1.
Figure: The Demand Curve for Oil Price of oil (per barrel) 9.9 10 Quantity of oil (millions of barrels per day)
In the diagram what is the elasticity of demand for oil?
Optional Answers:
1. -1
2. infinity
3. 1
4. 0
What Price to Set? A firm in a competitive market has no control over its price: The market determines each firm's price THE MARKET FOR OIL THE DEMAND FOR YOUR OIL PRICE PRICE MARKET SUPPLY $501 DEMAND FOR YOUR OIL MARKET DEMAND THE DEMAND FOR YOUR OIL IS PERFECTLY ELASTIC 82,000,000 QUANTITY (BARRELS) QUANTITY (BARRELS) 8 6:07 18:25
Elasticity Submit Assignment nouncements ignments cussions Due Thursday by 11:59pm Points 10 Submitting a text entry box or a file upload Available Mar 23 at 10am - Mar 26 at 11:59pm 4 days des ple Solve the following two problems and show all of your work. Provide your answers on word document and submit online. UI abus 1. Global use of crude oil fell from 64million barrels per day in 1980 to 58 million barrels per day in 1982. During...
30 Price or eating Oil (Dollars per barrel) Quantity Demanded (Thousands of barrels per day) 100 60 Quantity Supplied (Thousands of barrels per day) PRICE (Dollars per barrel) Demand Shifters Supply Shifters Gas Cost of Crude Oil (Per barrel of heating on Price of Natural (Dollars per 1,000 cubicit) Price of an Oil Furnace (Dollars per furnace) Average Annual Income (Thousands of dollars) 2000 Cost of Refining of (Per barrel of heating oil) 20 40 60 80 100 120 140...
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4. Understanding changes In equillbrium price and quantity Aa Aa Suppose you are an analyst in the oil refinery industry and are responsible for estimating the equilibrium price and quantity of home heating oil. To do so, you must consider factors that can affect the supply of and demand for heating oil. Determinants of the demand for heating oll include household income, the price of an oil furnace (a complement to heating oil), and the price of natural gas (a...
Please chose the correct answer, and explain why. Thank you so
much!
Question 7 1 pts In the graph below, the Pigovian tax Price Market for Oil SupplyTax Etax Supply - EM Demand 20 25 millions of barrels of oil O has no impact on the quantity of oil sold. decreases the quantity of oil sold by 20 million barrels. increases the quantity of oil sold by 20 million barrels. decreases the quantity of oil sold by 5 million barrels....
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7. Suppose that you have been hired as an economist by OPEC and given the following schedule showing the world demand for oil:Your advice is needed on the following Price(S/barrel) Quantity demanded(millions of barrels/day) 10 20 30 40 50 60 50 40 30 20 questions: a) If the price rises from $20 to $30 a barrel, will the total revenue from oil sales increase or decrease? b) What will happen to total revenue if the supply of oil is decreased...
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