Reference no: EM131165608
1. Next, consider the following scenario:
2. In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon.
2. This is a 33% increase in price from January 2008.
3. During that time, the total quantity of gasoline purchased fell by 3%.
4. Supplies of gasoline produced also decreased from 1 million barrels to 800,000 barrels.
5. No viable substitute has been created to replace gasoline.
6. In a two- to three-page paper (600 words minimum), address the following. Be sure to show all your work.
7. Explain how you would calculate the price elasticity of demand for gasoline.
8. In general terms, explain how consumer and producer surplus will change as a result of this price increase.
9. Because there is no viable substitute for gasoline at this time, what can you say about the price elasticity for gasoline?
10. Explain the elasticity of supply for gasoline. (If prices go up, how quickly would the supply of gasoline increase?)
11. Is the demand for gasoline elastic, inelastic, perfectly elastic or inelastic, or unit elastic? Why?
|
When losing money on mondays still a good business decision
: Would consumers be better off in terms of welfare, when you compare a firm in monopolistic competition, oligopoly, and monopoly to one in perfect competition? Two sources in addition to your textbook are required for this paper. However, you didn'..
|
|
What is the journal entry to record the event
: Assume the following account balances immediately after an interest payment date: If the bonds are retired immediately at a total cost of $104,000, what is the journal entry to record this event?
|
|
What is the cash inflow from the sale
: what growth rate is its P/E ratio consistent with?- If the capital gains tax rate is 40% what is the cash inflow from the sale?
|
|
Describe how the items connect to your unwrapped standard
: After completing the reading and viewing the presentation, create a Constructed-Response item for your Priority Standards. Insert your Construct-Response items in the correct section of your Class Template.
|
|
Calculate the price elasticity of demand for gasoline
: Is the demand for gasoline elastic, inelastic, perfectly elastic or inelastic, or unit elastic? Why?
|
|
Create a pivottable report
: Create a PivotTable report using the data in Sales worksheet and place the PivotTable report in a new worksheet named Austin.
|
|
What ways could have incorporated critical thinking skills
: In a 300 word reflective essay, students will describe how they have incorporated critical thinking strategies into their daily routines. Students should consider including responses to any or all of the following prompts. Which of the nine strate..
|
|
Libertarianism-liberalism or communitarianism
: Pick one of the political approaches (Libertarianism, Liberalism, or Communitarianism) and demonstrate why you believe it would be the most unjust of the three approaches for a centralized government,
|
|
What happens to the profits of boat makers in the short run
: What happens to the profits of boat makers in the short run? What happens to the number of boat makers in the long run?
|