Homework Answers
10)
Current price of fuel per mile=3/15=20 cents per mile
It is given that he will drive 300 miles per month at this price.
11)
Gasoline consumption=Distance travelled/Mileage=300/15=20 gallons
12)
Given P1=10 cents per mile, distance travelled=Q1=600
Given P2=20 cents per mile, distance travelled=Q2=300
I shall use mid point apprach to calculate the price elasticity of demand
Percent change in price=(P2-P1)/[(P2+P1)/2]=(20-10)/((20+10)/2)=66.6667%
Percent change in quantity demanded=(Q2-Q1)/[(Q2+Q1)/2]
=(300-600)/((300+600)/2)=-66.6667%
Price elasticity of demand=Percent change in quantity demanded/Percent change in price
Price elasticity of demand=-66.6667%/66.6667%=-1
13)
Absoulte value of price elasticity of demand is 1. So, we can say that demand is unit elastic.
14)
Current price of fuel per mile=3/30=10 cents per mile
It is given that he will drive 600 miles per month at this price.
15)
Gasoline consumption=Distance travelled/Mileage=600/30=20 gallons
16)
We can see that gasoline demand remain unchanged in this case.
Add Answer to:
ocx 7.3 KB) Lindley loves to drive but is very sensitive to the gasoline price of...
Stan Moneymaker needs 15 gallons of gasoline to top off his automobile's gas tank. If he...
Stan Moneymaker needs 15 gallons of gasoline to top off his automobile's gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.00 per gallon and Stan's car gets 25 mpg for in-town driving. Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on...
Stan Moneymaker needs 12 gallons of gasoline to top off his automobile's gas tank. If he...
Stan Moneymaker needs 12 gallons of gasoline to top off his automobile's gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.15 per gallon on the price of gasoline. Suppose gasoline costs $3.50 per gallon and Stan's car gets 25 mpg for in-town driving. Each mile that Stan drives creates one pound of carbon dioxide. Each pound of Co, has a cost impact of $0.03 on...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is volatile and varies greatly from day to day. The price per gallon varies based on the seasonal blend of gasoline, which is determined by clean-air requirements, and Cal's pricing choices are limited to the profit margin for his price Base price of unleaded regular delivered in New York harbor (Sept 2018) Added cost to Cal: Maryland state gasoline tax Federal gasoline tax Delivery Advertising...
6. You drive a taxi. If you use premium unleaded, your cab gets 25 miles to...
6. You drive a taxi. If you use premium unleaded, your cab gets 25 miles to the gallon. If you use regular unleaded, you get 23 miles per gallon. Let P stand for a gallon of premium, and R stand for a gallon of regular. a. If output (Q) is measured in miles driven, write your production function in terms of the two gasoline inputs. b. In a normal month, you drive 2,300 miles. If regular sells for $1.05 per...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is volatile and varies greatly from day to day. The price per gallon varies based on the seasonal blend of gasoline, which is determined by clean-air requirements, and Cal's pricing choices are limited to the profit margin for his price. Base price of unleaded regular delivered in New York harbor (Sept 2018 060 Added cost to Cal: 0.335 0.184 0.090 0.030 He recently raised the...
In June 2008, when gasoline prices were at an all-time high (more than $3.99 per gallon),...
In June 2008, when gasoline prices were at an all-time high (more than $3.99 per gallon), Chrysler Motor Company promoted its Jeep vehicle with the offer of either $4,400 off the price of the vehicle or the guarantee that the buyer would not pay more than $2.80 per gallon of gas for the next 3 years (the details of the guarantee could vary by dealer) Required: 1. Assume that the Jeep vehicle you are interested in gets 15 mpg combined...
The corporate average fuel economy (CAFE) standard for mileage is currently 26.5 miles per gallon of gasoline (the defen...
The corporate average fuel economy (CAFE) standard for mileage is currently 26.5 miles per gallon of gasoline (the defender) for passenger cars. To conserve fuel and reduce air pollution, suppose the u.s Congress sets the CAFE standard at 35 miles per gallon(the challenger) in 2010. An auto will emit on average 0.8 pounds of carbon dioxide(c02) per mile driven at 26.5 miles per gallon, and will emit 0.65 pounds of CO2 per mile driven at 35 miles per gallon. A....
Mr. Carr derives a lot of pleasure from driving under the wide blue skies. For the...
Mr. Carr derives a lot of pleasure from driving under the wide blue skies. For the number of miles x that he drives, he receives Utility U(x) = 500x – x2 Once he drives beyond a certain number of miles weariness kicks in and the ride becomes less and less enjoyable. His car gives him a decent highway mileage of 25 miles per gallon. But paying for gas (or paying in general) induces disutility shown by U(y) = -1000y, where...
1. Assuming your car gets 30 miles/gallon and you drive 5,000 miles each year, calculate how...
1. Assuming your car gets 30 miles/gallon and you drive 5,000 miles each year, calculate how many gallons of gasoline you use per year by driving your car. Give your (numerical) answer to the nearest 1 without any unit. 2. )Using your answer above, 167 gallons, calculate how many liters of gasoline your car burns per year. 1 gallon = 3.8 liters, 1 L = 1000 mL, 1 kg = 1000 g Give you answer to the nearest 1 without...
5. (10 points) As the price of gasoline goes up, people are willing to drive farther to fill their tank in order to save money. Assume you had been buying gasoline for $2.40 per gallon and that i...
5. (10 points) As the price of gasoline goes up, people are willing to drive farther to fill their tank in order to save money. Assume you had been buying gasoline for $2.40 per gallon and that it went up to $2.83 per gallon at the station where you usually go. If you drive an F-150 pickup that gets 25 miles per gallon, what is the round-trip distance you can drive to break even if it will take 16 gallons...
Stan Moneymaker needs 12 gallons of gasoline to top off his automobile's gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.15 per gallon on the price of gasoline. Suppose gasoline costs $3.50 per gallon and Stan's car gets 25 mpg for in-town driving. Each mile that Stan drives creates one pound of carbon dioxide. Each pound of Co, has a cost impact of $0.03 on...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is volatile and varies greatly from day to day. The price per gallon varies based on the seasonal blend of gasoline, which is determined by clean-air requirements, and Cal's pricing choices are limited to the profit margin for his price Base price of unleaded regular delivered in New York harbor (Sept 2018) Added cost to Cal: Maryland state gasoline tax Federal gasoline tax Delivery Advertising...
6. You drive a taxi. If you use premium unleaded, your cab gets 25 miles to the gallon. If you use regular unleaded, you get 23 miles per gallon. Let P stand for a gallon of premium, and R stand for a gallon of regular. a. If output (Q) is measured in miles driven, write your production function in terms of the two gasoline inputs. b. In a normal month, you drive 2,300 miles. If regular sells for $1.05 per...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is volatile and varies greatly from day to day. The price per gallon varies based on the seasonal blend of gasoline, which is determined by clean-air requirements, and Cal's pricing choices are limited to the profit margin for his price. Base price of unleaded regular delivered in New York harbor (Sept 2018 060 Added cost to Cal: 0.335 0.184 0.090 0.030 He recently raised the...
In June 2008, when gasoline prices were at an all-time high (more than $3.99 per gallon), Chrysler Motor Company promoted its Jeep vehicle with the offer of either $4,400 off the price of the vehicle or the guarantee that the buyer would not pay more than $2.80 per gallon of gas for the next 3 years (the details of the guarantee could vary by dealer) Required: 1. Assume that the Jeep vehicle you are interested in gets 15 mpg combined...
Mr. Carr derives a lot of pleasure from driving under the wide blue skies. For the number of miles x that he drives, he receives Utility U(x) = 500x – x2 Once he drives beyond a certain number of miles weariness kicks in and the ride becomes less and less enjoyable. His car gives him a decent highway mileage of 25 miles per gallon. But paying for gas (or paying in general) induces disutility shown by U(y) = -1000y, where...
5. (10 points) As the price of gasoline goes up, people are willing to drive farther to fill their tank in order to save money. Assume you had been buying gasoline for $2.40 per gallon and that it went up to $2.83 per gallon at the station where you usually go. If you drive an F-150 pickup that gets 25 miles per gallon, what is the round-trip distance you can drive to break even if it will take 16 gallons...
Most questions answered within 3 hours.
-
A hospital performs 100 surgeries per week. The probability that
complications after surgery occur is 10%....
asked 1 minute from now -
A 5.20 mW helium neon laser emits a visible laser beam with a
wavelength of 633...
asked 37 seconds from now -
In preparing its cash flow statement for the year ended December
31, 2018, Green Co. gathered...
asked 30 seconds ago -
Donna is 18 years old and full time accounting student.She is
saving for an overseas holiday...
asked 56 seconds ago -
Service-oriented architectures (SOA) provide
object-oriented architectures for web platforms that represent a
collection of services. SOA...
asked 1 minute ago -
Le Terroir Winery is considering an expansion project to produce
fine wines. The trial expansion will...
asked 10 minutes ago -
The Bahraini public budget experiences deficit in the last
seven years, what are procedures are taken...
asked 17 minutes ago -
You invested $30,000 in a mutual fund at the beginning of the
year when the NAV...
asked 21 minutes ago -
Would you expect the price elasticity of supply for guitars to
be more inelastic in the...
asked 23 minutes ago -
A snowmobile is originally at the point with position vector
30.1 m at 95.0° counterclockwise from...
asked 22 minutes ago -
MAN3240 Organizational Behavior
In one to two paragraphs
6.) How can understanding emotions make me more...
asked 31 minutes ago -
Identify one individual who, in your opinion, is an excellent
leader. List the qualities that this...
asked 28 minutes ago