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
Afina-wow [57]
3 years ago
14

An individual has the following demand function for gasoline:

Business
1 answer:
grandymaker [24]3 years ago
4 0

Answer:

Explanation:

From the information given:

Q^d_{gas} = 15 - 3 P_{gas} + 0.02 I +0.11 P_{BT} -0.008P_{AUTO}

Q^d_{gas} = 15 - 3 (30) + 0.02(40000) +0.11 (25) -0.008(22000)

Q^d_{gas} = 15 - 90 + 800+2.75 -176

Q^d_{gas} = 551.75

So, Income elasticity = \dfrac{dQ^d}{dI}*\dfrac{I}{Q^d}

= 0.02 *\dfrac{40000}{551.75}

= 1.45 which is greater than 1

It is positive → i.e. Normal good

The cross elasticity = \dfrac{dQ^d}{dPBT}*\dfrac{PBT}{Q^d}

= 0.11 \times \dfrac{25}{551.75}

= 0.0049 which is greater than 0

It is positive →  hence they are substituents.

You might be interested in
A finance lease agreement calls for quarterly lease payments of $4,625 over a 15-year lease term, with the first payment on July
love history [14]

Answer:

The Lease amortization schedule is attached in pdf format with this answer please find.

Explanation:

Lease payments, includes the payment of interest and principal as well. The interest is calculated for the period opening balance of lease and the residual amount of lease payment and interest is settled against the lease amount.

Download pdf
3 0
3 years ago
At December 31, year 3 , Bren Co. had the following deferred income tax items: • A deferred income tax liability of $15,000 rela
ahrayia [7]

Answer:

(B) A noncurrent liability of $4,000

Explanation:

The non-current liability in respect of deferred tax shall be recognised in the accounts of Bren Co. as at December 31 as follows:

Deferred income tax liability related to non-current assets= $15,000

Deferred income tax asset related to non-current liability = ($3,000)

Deferred income tax asset related to current liability         = ($8,000)

Deferred income tax liability to be recorded at year end   = $4,000

So based on the above discussion the answer is (B) A noncurrent liability of $4,000

8 0
4 years ago
Which of the following statements about your credit report is most accurate?
Darina [25.2K]

owjsbsuensienusnwjhrudbehssyhe

4 0
3 years ago
On January​ 1, 2017,​ Sophie's Sunlounge owned 4 tanning beds valued at​ $20,000. During​ 2017, Sophie's bought 3 new beds at a
Natali5045456 [20]

Answer:

Net Investment = 4,000

Explanation:

Gross Investment = 10,000

Depreciation = Market Value - Book value

Depreciation =26,000 - 20,000

Depreciation = 6,000

Net Investment = Gross Investment - Depreciation

Net Investment = 10,000 - 6,000

Net Investment = 4,000

NOTE: Gross investment for 2017 will be the 3 new beds that Sophie bought during 2017 at a total cost of 10,000. To calculate Net investment we should calculate depreciation first by deducting book value from market value.

4 0
3 years ago
If marginal cost is below average variable cost then
alisha [4.7K]
The average variable cost will drop.
7 0
4 years ago
Other questions:
  • Goals of the Firm. Fill in the blanks in the following passage by choosing the most appropriate term from the following list (so
    9·1 answer
  • Supply chain management involves managing: A. managing the stock room supply only. B. the flow of raw materials to inventory onl
    6·2 answers
  • What does the production possibility frontier show?
    14·2 answers
  • A weaker dollar benefits_______and hurts______.
    10·1 answer
  • Here is some price information on Fincorp stock. Suppose first that Fincorp trades in a dealer market.
    9·1 answer
  • Two economists created fake resumes with either common african-american names such as lakisha and jamal or common white names su
    14·1 answer
  • Toyota deciding to issue $175 million in long-term debt is an example of which of the following corporate financial decisions?
    9·1 answer
  • When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores.​?
    8·2 answers
  • A recently launched line of baby clothing is gaining popularity among a large mass of the population. In which stage of fashion
    15·2 answers
  • In AHP procedure, can you explain the reason why we need to check the consistency and briefly explain the method of consistency
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!