The price-demand equation for gasoline is 0.6x + 2p = 85 where p is the price...
The price elasticity of demand for gasoline is estimated to be -0.2. Two million gallons are sold daily at a price of $1. a. Find the demand function for gasoline, assuming it is linear, with gasoline measured in millions of gallons. b. Graph the demand curve.
Suppose the demand for gasoline in the United States is Q = 500.8 - 7.8P + 0.027Y - 19.6MPG, where Q is annual U.S. gasoline consumption in millions of gallons per day, P is the retail price of gasoline in $/gallon, Y is real disposable income in billions of 2012 dollars, and MPG is the fleet efficiency in miles per gallon. Assume in 2015 P = 2.50, Y = 14600, and MPG = 24.7. Note that MPG is the long-run...
Daily demand for gasoline at Billy-Bob's Mobile Station is described by D(p) = 980-300p, where p is the price in dollars. Billy-Bob's supply is S(p) =-2980 + 3000p.Suppose that the state government places a tax of 18 cents on every gallon of gasoline sold. What is the deadweight loss resulting from the tax?
Suppose that the long-run price elasticity of demand for gasoline is 0.40. Assume that the price of gasoline is currently $4.00 per gallon, the quantity of gasoline is 140 billion gallons per year, and the federal government decides to increase the excise tax on gasoline by $1.00 per gallon. Suppose that in the long run the price of gasoline increases by $0.70 per gallon after the $1.00 excise tax is a. Using the midpoint formula, after the tax is imposed,...
AmeriBabe manufactures and sells rubber baby buggy bumpers. The price-demand equation is: where p is the price (in dollars) at which z rubber baby buggy bumpers can be sold. a. What is the demand if the price is $2280? The demand isbumpers. p 2600-8x Preview b. The cost to produce x rubber baby buggy bumpers is given by C() 900680 and the new revenue function is R(z)(2600 8a) How many rubber baby buggy bumpers should be manufactured and sold to...
Suppose that the long-run price elasticity of demand for gasoline is -0.45. Assume that the price of gasoline is currently $4.00 per gallon, the quantity of gasoline is 140 billion gallons per year, and the federal government decides to increase the excise tax on gasoline by $1.00 per gallon. Suppose that in the long run the price of gasoline increases by $0.60 per gallon after the S1.00 excise tax is imposed. a. Using the midpoint formula, after the tax is...
Suppose that the long-run price elasticity of demand for gasoline is 0.45. Assume that the price of gasoline is currently $4.00 per gallon, the quantity of gasoline is 140 billion gallons per year, and the federal government decides to increase the excise tax on gasoline by $1.00 per gallon. Suppose that in the long run the price of gasoline increases by $0.60 per gallon after the $1.00 excise tax is imposec. a. Using the midpoint formula, after the tax is...
17.) The market demand function for ice cream is o' = 8 - 2P and the market supply function for ice cream is o® = 6P-3, where both quantities are measured in millions of gallons per year. What is the producer surplus at the competitive market equilibrium? $6 89 million $2.29 million $9.18 million $13.5 million
8. In March 2002 the retail price of gasoline was S1.19 per gallon-exactly the same as it was in August 1990. Yet total gasoline production and consumption rose from 6.6 million gallons per week in 1990 to 8.7 million gallons per week in 2002. Using the graph below, draw the appropriate shifts in the demand and supply curves to explain these two phenomena Price (S/gallon) S1990 D1990 Millions of gallons/week
The price-demand equation for avocados is 10p+x=20, where p is the price of an avocado and x is the weekly demand (in thousands) for avocados. Write an expression for revenue as a function of the weekly price for avocados. (Rp)=?