Answer:
Explanation:
If in the united states, gasoline costs consumers about $2.50 per gallon and in Italy, it costs consumers about $6 per gallon. The effect that this price differential is likely to have is that:
a. The size of cars in the United States and in Italy:
Consumers in Italy will opt to have lesser cars than those in the United States because the cost of owning cars is technically in Italy is higher when the price of fuel which is the running cost is considered.
b. The use of public transportation in the United States and Italy:
As a result of people not having as much cars in Italy in comparison to consumers in the United States due to higher gasoline costs, the resultant effect will be that more people will have to use the public transport in Italy because there are less private cars in comparison to the U.S. Contrariwise, lesser people will use public transport system in the U.S. because there are more private cars available
c. The fuel efficiency of cars in the US and Italy:
Consumers tend to be more efficient when products are more expensive therefore fuel efficiency in Italy will be higher than in the United States because gasoline will almost be like a luxury good while in the U.S. it will be seen as a necessity.
d. What would be the effect of raising the price of gasoline in the US to $5 per gallon:
The quantity demanded of gasoline will fall naturally and remarkably by 50% because gasoline is most likely price-elastic. People will sell off their cars and begin to use the public transport system. Those who can afford to keep their cars will be more fuel efficient
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Answer:
$0.215
Explanation:
The computation of the cost per item in Group 1 is shown below:-
Candy amount paid = $3,100
Item received = 7,100
For Group 1
Sale value = Group 1 units × Selling price
= 2,110 × $0.15
= $316.5
For Group 2
Sale value = Group 2 units × Selling price
= 4,720 × $0.35
= $1,652
For Group 3
Sale value = Group 3 units × Selling price
= 270 × $0.71
= $191.7
= Total sale value = $316.5 + $1,652 + $191.7
= $2,160.2
So, Sale percentage for Group 1 = $316.5 ÷ $2,160.2
= 14.65%
Now, the proportion of cost for Group 1
= $3,100 × 14.65%
= 454.15
Cost per unit = Proportion cost ÷ Group 1 units
= $454.15 ÷ 2,110
= $0.215
Answer: 0.000903
Explanation:
Expected return is the sum of the probability that the other returns will happen.
= (13% * 83%) + (5% * 17%)
= 10.79 % + 0.85%
= 11.64%
Variance = ((Return during boom - Expected return)²*probability of boom) + ((Return during recession - Expected Return)²*probability of recession)
Variance = ((13% -11.64%)² * 83%) + (5% - 11.64%)² * 17%)
= 0.0001535168 + 0.0007495232
= 0.000903