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Sever21 [200]
4 years ago
6

Suppose that when the price of gasoline is $3 per gallon, the total amount of gasoline purchased in the United States is 8 milli

on barrels per day. Also, suppose that when the price of gas decreases to $2.25 per gallon, the total amount of gasoline purchased is 12 million barrels per day. Based on these numbers and using the simple formula, the price elasticity of demand for gasoline is:
a. 4
b. 0.25.
c. 2.
d. -0.5.
Business
1 answer:
miss Akunina [59]4 years ago
4 0

Answer:

Option (C) is correct.

Explanation:

Elasticity of demand refers to the responsiveness of change in quantity demanded with any change in the price level.

Elasticity of demand:

= (change in quantity ÷ old quantity) ÷ (change in price ÷ old price)

=[(12 - 8) ÷ 8] ÷ [($3 - $2.25) ÷ $3]

= 0.5 ÷ 0.25

= 2

Therefore, the price elasticity of demand is 2.

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Create the following lists. There are ten names and five lists of test scores. The correspondence between the names and the test
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Answer:

Create the following lists. There are ten names and five lists of test scores. The correspondence between the names and the test scores are determined by positions. For example, the test scores for Cindy are 67, 92, 67, 43, 78. Drop the lowest of the five test scores for each student and average the rest and determine the letter grade for that student. Make sure your printout is the same as mine with the same column widths

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Explanation:

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4 0
4 years ago
Petrus Framing's cost formula for its supplies cost is $1,860 per month plus $11 per frame. For the month of March, the company
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4 0
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The roles and responsibilities of top executives and members of a corporation’s board of directors are different. Traditionally,
Eddi Din [679]

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