Decrease in price of? gasoline-holding other thing? constant

Assignment Help Business Economics
Reference no: EM131004668

Gasoline prices in the United States decreased significantly between 2008 and 2009. A decrease in the price of? gasoline, holding other things? constant, will cause which of the following to? occur?

a) increase the demand for gasoline b) decrease the demand for gasoline c) increase the quantity of gasoline demanded c) decrease the quantity of gasoline demanded

Reference no: EM131004668

Questions Cloud

Technology transfer in the solow model : Technology transfer in the Solow model: One explanation for China’s rapid economic growth during the past several decades is its expansion of policies that encourage “technology transfer.” Draw a graph showing what happens to output in China over tim..
Market characterized by the inverse demand curve : There are two firms that are producing identical goods in a market characterized by the inverse demand curve P:60 -2Q, where Q is the sum of Firm l's and Firm 2's output, qft qz. Each firm's marginal cost is constant at$12, and fixed costs are zero. ..
Savings and investment in the open economy : Now assume that the economy is open and that the world interest rate is determined on the world market instead of in the domestic economy. Use a two-country model with initial current accounts equal to zero. How does an increase in domestic wealth af..
Two firms conspire to charge a monopoly price : Ney Inc. and ARN Parts are the only two producers of bulldozer bucket teeth. The owners of the two firms conspire to charge a monopoly price, with each firm serving half the market.  What is each firm's profit? Now suppose that Ney Inc. reneges on th..
Decrease in price of? gasoline-holding other thing? constant : Gasoline prices in the United States decreased significantly between 2008 and 2009. A decrease in the price of? gasoline, holding other things? constant, will cause which of the following to? occur?
Practical significance of income elasticity coefficients : What is the practical significance of income elasticity coefficients? Explain the significance using as examples an income elasticity of 3.0 for automobiles and an income elasticity of 0.20 for home-cooked meals.
Fiscal policy-defined as decrease in private expenditure : What is Fiscal policy? Crowding out effect is defined as "the decrease in private expenditure (C+I) as a consequence of increase in government spending (G) or the financial needs of a budget deficit". So, crowding out cannot have a "positive" effect ..
Based on personal experience-elastic demand : Based on your personal experience, please post one good that you think has elastic demand, and one good that has inelastic demand. Please include an explanation as to why you chose these goods.
Effect of a tax on buyers and sellers : Suppose the government institutes a tax of $40.60 per bottle, to be paid by the seller. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in..

Reviews

Write a Review

Business Economics Questions & Answers

  Set of isoquants that depict capital and labor

Draw a graph showing a set of isoquants that depict capital and labor to be perfect complements (not substitutable at all) in a production function that exhibits constant returns to scale. Be sure to label the input and output levels on the isoquants..

  Suppose there is 120 million of cash and that half of this

suppose there is 120 million of cash and that half of this cash is held in bank vaults as required reserves that is

  The cost-minimising quantity

If a firm’s output is produced according to Q = 4LK, the price of K is $10, and the price of L is $40, what is the cost-minimising combination of K and L capable of producing 64 units of output? The cost-minimising quantity of K is? The cost-minimisi..

  Trade took place between the two countries

Suppose that the K/L ratio is higher in Germany than in Britain. What would you expect to happen to wages in Germany as trade took place between the two countries? Why?

  Exchange for someone doing their tax returns

Caroline has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accounting firm’s website in exchange for someone doing their tax returns. Which of the following principles of economic in..

  Consumers surplus and the producer surplus earned

Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..

  Government control and the associated deadweight loss

The aluminum industry faces a private marginal cost curve PMC = Q and a market inverse-demand curve of PD = 20 – QD. However, production creates an externality with marginal damages of MD = 2. Graph the private marginal cost, the social marginal cost..

  Certain remodeling work

Ace contracted with Jones to do certain remodeling work on the building owned by Jones. Jones supplied the specifications for the work. The contract price was $70,000. After the work was completed, Jones was dissatisfied and had Clay, an expert, comp..

  Qin ua villa 1000 people live on main street that is 10

q.in ua villa 1000 people live on main street that is 10 miles long. every day each of the 1000 people will buy 1 fruit

  Comparative advantage in meatball production

Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli. Which tribe now has an absolute advantage in producing spaghetti? Which has the comparative ..

  What you do whenit is perfectly firm

what should you do when the manager of a perfectly competitive firm whose short run cost is TC = 100 + 160Q + 3Q2. If the market price is $196.

  Compare and contrast the facility costs of vectorcal

Compare and contrast the facility costs of VectorCal and the US Government. Determine at least two advantages for using facility costs for both VectorCal and the US Government. Explain your rationale. "Procedures of FCCOM".

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd