1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ivann1987 [24]
3 years ago
13

In July 2008, the average price of gasoline in the United States was $4.09 per gallon and consumers bought 6 percent less gasoli

ne than they had during July 2007, when the average price was $2.96 per gallon. Based on these numbers, what was the price elasticity of demand for gasoline from July 2007 to July 2008?
Business
1 answer:
Basile [38]3 years ago
6 0

Answer:

PED= 0.1571

Explanation:

The price elasticity of demand (PED) indicates how the quantity demanded change when the price changes. Is defined by this equation:  

Price Elasticity of Demand = Percentage change in Q/ Percentage change in P  

In this case, the problem is giving percentage changes in Q but we must calculate the percentage change in price:

%Change in price = ( p2-p1/p1)*100= ($4.09-$2.96)/$2.96= 0.3817*100=38.17%

%Change in quantity is= -6%

PED= -6%/38.17%

In absolute value:

PED= 0.1571

If the PED is less than 1 then gasoline is considered as inelastic.

You might be interested in
Yum Yum Ice Cream Shoppe provides each employee with a clean, sharp-looking uniform. It also instructs employees to keep the wor
krok68 [10]

Tangibles

hope this helps! :)

7 0
3 years ago
According to the long-run Phillips Curve:
Oxana [17]

Answer:

c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.

Explanation:

Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.

However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

7 0
3 years ago
What is unlimited liability?
Vladimir [108]
Unlimited liability<span> refers to the legal obligations general partners and sole proprietors because they are </span>liable<span> for all business debts if the business can't pay its </span>liabilities<span>.</span>
6 0
3 years ago
Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com
Komok [63]

<u>Solution and Explanation:</u>

<u> Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=\$ 5200+(2000 * \$ 2.40 \text { per dozen })

=$10000

<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                2  10000

               3  10000

                4  10000

               5  10000

              6  10000

IRR   13%

=13% using IRR function in excel.

<u>Answer:3</u> IRR=17%

with salvage value

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                 2  10000

                3  10000

               4  10000

                5  10000

              6  22000

IRR   17%

using IRR function in excel.

5 0
3 years ago
Assuming bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of bourne's net §1231 gain for
Novosadov [1.4K]
<span>The Menendez family has a net income of $4,500. The chart shows their cost-of-living percentages. How much do they spend on transportation?</span>
7 0
3 years ago
Other questions:
  • Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons. Only better recruiting will return the
    14·1 answer
  • The factor that has the greatest impact on your credit score is
    5·2 answers
  • Exercise 14-1 On January 1, Guillen Corporation had 90,000 shares of no-par common stock issued and outstanding. The stock has a
    10·1 answer
  • For long-term positive relations, the goal of negotiation should most likely be to ________. a) establish a clear line of commun
    12·1 answer
  • A war begins between two countries, causing a need for thousands of men workers to produce uniforms and Nezos
    14·1 answer
  • On October 15, 2021, a 5% stock dividend was declared and distributed. The fair value of the common stock on this date was $31.4
    5·1 answer
  • Does anyone else like tyler, the creator or is it just me ..?
    14·1 answer
  • "In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. An article in the W
    11·1 answer
  • You're trying to save to buy a new $196,000 Ferrari. You have $46,000 today that can be invested at your bank. The bank pays 5.4
    6·1 answer
  • A student should first borrow federal loans because of:_______
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!