Assume that the price of gasoline is currently falling. What will happen to the quantity of...
Assume that the price of gasoline is currently falling. What will happen to the quantity of gasoline supplied at your local gas station? Under this circumstance, what else might the local gas station focus on selling to keep profits growing? When the price of gasoline was rising rapidly, how did that impact the demand for transportation and the selection of cars available to consumers? Explain your answers in terms of the principles underlying demand and supply curves
Homework Answers
When the price of the gasoline is falling the supply of gasoline will fall as the price of the gasoline and supply re directly related. in that situation the firm will sell other related goods like services for car and other transportation coming in to increase the overall revenue for the firm.
As the gasoline and transportation are complement a rise in the price of gasoline will decrease the demand for other transport. the lower price will attract more transportation. at the time when the price is on a rise people will demand for such cars that are more fuel efficient.
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Assume that the price of gasoline is currently falling. What
will happen to the quantity of...
Assume that the current price for gasoline is $1.30 a litre, and at that price the...
Assume that the current price for gasoline is $1.30 a litre, and at that price the market is in equilibrium with 144,000 litres sold per day. Now assume that the government imposes a $.10 a litre sales tax on gasoline, to be collected by gas stations and remitted to the government. After the tax, consumers pay $1.38 per litre of gasoline, and only 140,000 litres are sold per day. a) Draw the Demand Curve, and the Old and the New...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is...
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Directions: For each question, show what happens to Equilibrium price (P) and quantity (Q) using supply-demand...
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36) What would happen in the red apple market if the price of golden apples decreases?...
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Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is...
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1. The numbers listed under each item below are the costs for producing Product A, Product...
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