Calculate the elasticity of demand for gas

Assignment Help Microeconomics
Reference no: EM133276753

Question - 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. Calculate the elasticity of demand for gas and the cross-price elasticity of SUVs with respect to the price of gas. What can you say about elasticities?

Reference no: EM133276753

Questions Cloud

How do cognition or personal constructs relate to : PSY 328 Southern New Hampshire University How do cognition or personal constructs relate to your example? Family member carried me to a march where KKK were
What is the mixed strategy expected payout for player b : If Player A plays UP and Player B plays RIGHT then Player A gets $4 and Player B gets $3. What is the mixed strategy expected payout for Player B
Describe a situation where a social workers personal : OL 614 Saint Mary's University, Twin Cities Describe a situation where a social worker's personal and professional values might be in conflict, and elaborate
Estimate the size of the total market and the number : develop a possible segmentation approach for potential donors to that organization. Estimate the size of the total market and the number in each segment
Calculate the elasticity of demand for gas : Calculate the elasticity of demand for gas and the cross-price elasticity of SUVs with respect to the price of gas. What can you say about elasticities
What commitments can you make to fight systemic colonial : DEVS 220 Queens University What commitments can you make to fight systemic colonial racism and promote safe/brave spaces and justice for Indigenous peoples
What is the reversal of fortune : What is the "Reversal of Fortune"? Does this phenomenon refute the claim that countries with poor geography are destined for development failure
Differentiate incidence and prevalence : PSYCHOLOGY 360 University of the Fraser Valley What are the different modes of disease transmission? Discuss each and give examples.
Describe the main challenges to economic development : Describe the main challenges to economic development in the Philippines. Select country in Asia, Latin America or Africa and compare their economic development

Reviews

Write a Review

Microeconomics Questions & Answers

  Consider a perfectly competitive market in long-run

consider a perfectly competitive market in long-run equilibrium where all firms operate under the same cost conditions.

  Examine the common price setting strategies of airlines

Examine the common price setting strategies of airlines that use game theory. Predict the potential effects of such pricing strategies on the demand for seats, and conclude the resulting impact on the profitability of the airlines.

  Describe and derive a expression for the marginal cost curve

Discuss whether or not Paradise Shoes should expand its output further beyond 1200 pairs per week. State all assumptions and qualifications that underlie your recommendation.

  Write the conditions of efficient resolution to this

my neighborsare college students who sometimes have late-night parties. assume that the nuisance cost of these parties

  Determine which manufacturer offers the best economic choice

Annual cost estimates are expected to be high to ensure readiness at any time. Use a spreadsheet and incremental ROR analysis to determine which manufacturer offers the best economic choice.

  Why can not all balance of payments accounts be in surplus

Why can't all the balance of payments accounts be in surplus? What factors decide the demand for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system?

  How much can he spend on the computer now

Alvin's Uncle Arnold gave him $16,000 from selling the old family farm. Alvin wants to start college and have $12,000 available to buy a used car.

  Find the optimal value of maximize the function

Assume that there exists an unlimited number of different approaches to developing a new drug, each costing $1. The probability that the drug will be discovered

  Workers at a wage

A firm can hire 10 workers at a wage of $10 but has to pay a wage of $12 to ALL workers to get the 11th worker. What is the marginal cost of adding the 11th worker.

  Calculate the compensated elasticities of labour supply

The wage rate rises to $25/hour and she decides to work 41.5 hours a week. At S25/hour, if she worked 49 hours a week at the new relative prices she would have.

  What difference of prisoner labor and work-release concepts

What is the difference between prisoner labor and work-release concepts? Is there a difference between these two notions? Fully justify and substantiate your response.

  Which system has the greatest b-c ratio

A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd