Suppose that a 20% increase in the price of gasoline causes a 5% decrease in the...
Suppose that a 20% increase in the price of gasoline causes a 5% decrease in the consumption of gasoline and a 30% drop in the sales of SUVs. What can you say about elasticities? 2. b) A 10% increase in the price of pizza causes a 10% drop in the quantity of both pizza and beer sold. Describe elasticities and the nature of the two products.
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Suppose that a 20% increase in the price of gasoline causes a 5%
decrease in the...
Suppose that a 20% increase in the price of gasoline causes a 5% decrease in the...
Suppose that a 20% increase in the price of gasoline causes a 5% decrease in the consumption of gasoline and a 30% drop in the sales of SUVs. What can you say about elasticities?
QUESTION 4 Suppose a 10% decrease in the price of pianos causes a 40% increase in...
QUESTION 4 Suppose a 10% decrease in the price of pianos causes a 40% increase in piano sales. The elasticity of demand for pianos is
The demand for gasoline is inelastic, a 5 percent increase in the price of gasoline will:...
The demand for gasoline is inelastic, a 5 percent increase in the price of gasoline will: O decrease the quantity of gasoline demanded by more than 5 percent. O increase the quantity of gasoline demanded by less than 5 percent O increase the quantity of gasoline demanded by more than 5 percent. O decrease the quantity of gasoline demanded by less than 5 percent.
8. Refer to the "In the News" below: In the News: SUV Sales Drop with Gasoline...
8. Refer to the "In the News" below: In the News: SUV Sales Drop with Gasoline Price Rise Analysts say that with the increase in gasoline prices comes a drop in SUV sales and trade-in values at dealerships. The U.S. Department of Energy said that during the past week, U.S. gasoline prices topped $3 a gallon—the highest level since October 2008. .. According to Alec Gutierrez, lead analyst for vehicle evaluation at Kelley Blue Book, SUV sales have decreased about...
QUESTION 1 Suppose the short-run elasticity of demand for gasoline in the US retail market is -0.5, and the long-run e...
QUESTION 1 Suppose the short-run elasticity of demand for gasoline in the US retail market is -0.5, and the long-run elasticity of demand in the same market is -0.8. What is the impact of an increase in the US federal gasoline tax? A. Increase tax revenue in the short run and decrease tax revenue in the long run B. Decrease tax revenue in both short run and long run C. Increase tax revenue in both short run and long run...
2) If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely A) shift...
2) If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely A) shift leftward. B) shift rightward. C) become flatter. D) become steeper. 3) If the price of automobiles were to decrease substantially, the demand curve for automobiles would most likely A) shift rightward. B) shift leftward. C) remain unchanged. D) become steeper. 4) Suppose a market were currently at equilibrium. A rightward shift of the demand curve would cause A) an increase...
boxes are increase/decrease Excess supply of a product will cause the price to price change, the quantity demanded will...
boxes are
increase/decrease
Excess supply of a product will cause the price to price change, the quantity demanded will As a consequence of the and the quantity supplied will Market for pizza thousand bS At the current market price Market of $10.00, there is an excess supply of pizzas per month. (Enter your response as a positive integer.) PMarket Price per pizza D 2.00 1.007 0.00+ 7 18 :45 5 10 15 20 25 30 35 40 45 50 55...
Agree or Disagree with the following statement and why. I think that if the price of...
Agree or Disagree with the following statement and why. I think that if the price of beer were to go up, then the supply of pizza would increase. If beer was to cost more that would be less money people could spend on pizza. Which would mean more pizzas would be left uneaten, which could result in less pizzas being made and sold in the future. I think the demand for pizza would go down. As stated before if the...
Suppose that the long-run price elasticity of demand for gasoline is 0.45. Assume that the price...
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...
1. Suppose there is a decrease in the price of gasoline. With the aid of a...
1. Suppose there is a decrease in the price of gasoline. With the aid of a demandand-supply diagram, explain how this will affect the equilibrium price and quantity in the market of gasoline cars. (6 marks) 2. Suppose the market for Japanese grapes is represented by: Supply: Q = 400 + P2 Demand: Q = 1000 – 5P2 i) Find the market equilibrium price and quantity. ii) Calculate the price elasticity of demand when the market is at the equilibrium....
QUESTION 4 Suppose a 10% decrease in the price of pianos causes a 40% increase in piano sales. The elasticity of demand for pianos is
The demand for gasoline is inelastic, a 5 percent increase in the price of gasoline will: O decrease the quantity of gasoline demanded by more than 5 percent. O increase the quantity of gasoline demanded by less than 5 percent O increase the quantity of gasoline demanded by more than 5 percent. O decrease the quantity of gasoline demanded by less than 5 percent.
8. Refer to the "In the News" below: In the News: SUV Sales Drop with Gasoline Price Rise Analysts say that with the increase in gasoline prices comes a drop in SUV sales and trade-in values at dealerships. The U.S. Department of Energy said that during the past week, U.S. gasoline prices topped $3 a gallon—the highest level since October 2008. .. According to Alec Gutierrez, lead analyst for vehicle evaluation at Kelley Blue Book, SUV sales have decreased about...
boxes are
increase/decrease
Excess supply of a product will cause the price to price change, the quantity demanded will As a consequence of the and the quantity supplied will Market for pizza thousand bS At the current market price Market of $10.00, there is an excess supply of pizzas per month. (Enter your response as a positive integer.) PMarket Price per pizza D 2.00 1.007 0.00+ 7 18 :45 5 10 15 20 25 30 35 40 45 50 55...
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...
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