Why the tepid response to higher gasoline prices

Assignment Help Econometrics

Reference no: EM131311916

Why the tepid response to higher gasoline prices? Most studies report that when U.S. gasoline prices rise by 10 percent, the quantity purchased falls by 1 to 2 percent. In September 2005, the retail gasoline price was $2.90 a gallon, about $1.00 higher than in September 2004, but purchases of gasoline fell by only 3.5 percent.
Calculate the price elasticity of demand for gasoline implied by what most studies have found.

Reference no: EM131311916

Questions Cloud

Calculate the world price elasticity of supply of corn : Record U.S. corn crop, up 24%, is forecast The USDA reported that world corn production will be 9.9 percent greater than last year's, while U.S. corn production will be 24 percent larger. The price of corn is expected to be 46 percent higher than ..

Discuss some characteristics of quality data : Discuss some characteristics of quality data.Discuss how gaps (or breaches) are predicted and handled.Discuss how parities (or uniformities) identified and maintained?Identify and describe the gaps and parities in health information system data and i..

What is the weak formulation of the equation : Consider the boundary value problem -u"(x) + u(x) = -2 on(-1, 1) with u(-1) = 0 and u(1) = 0. 1. What is the weak formulation of the equation?

Write an economic paper about threshhold of inflation : Write an economic paper about Threshhold of inflation and economic growth in any develping country. The paper should be done by 4 sections: introduction, literature review, thretcal study and conclusion.

Why the tepid response to higher gasoline prices : Calculate the price elasticity of demand for gasoline implied by what most studies have found.

Sketch the function on the coordinate plane : Complete a table of values containing at least five points. Sketch the function on the coordinate plane. Describe the function's end behavior.

How did you find out about this organization : Include the name, location, and website (if available) of the organization.How did you find out about this organization?What would an individual need to do to be able to receive services at this organization?

Classify the function represented in the table : Use successive differences to classify the function represented in the table as linear, quadratic, or other. Show all your work.

Briefly summarize your chosen examples function and design : briefly summarize your chosen example's function and design. Next, determine whether or not you believe the example could function as effectively in a non-distributed architecture as it had in a distributed architecture.

User Account

All Pages