Demand curve for gasoline shifts rightward

Assignment Help Business Economics

Reference no: EM131002381

Suppose the US demand curve for gasoline shifts rightward, and the U.S. supply curve for gasoline remains unchanged. As a result, the price of gasoline increases by 9 percent, and the equilibrium quantity increases by 3 percent. Which of the following statements is true based on this information? Show Work

A) The price elasticity of demand for gasoline is roughly 0.33.

B) The price elasticity of demand for gasoline is roughly -3.

C) The price elasticity of supply for gasoline is roughly 0.33.

D) The price elasticity of supply for gasoline is roughly 3.

Reference no: EM131002381

Questions Cloud

What is the concept or practice : What is the concept or practice (definition) and How would this concept or practice be applied typically in project management

How much work does a supermarket checkout attendant : How much work does a supermarket checkout attendant do on a can of soup he pushes 0.450 m horizontally with a force of 4.40 N? Express your answer in joules and kilocalories.

How much work does it take to slide a box : How much work does it take to slide a box 38 meters along the ground by pulling it with a 200 N force at an angle of 13o from the horizontal?

Always round tire finds the following cross elasticity : Always Round Tire finds the following cross elasticity:

Demand curve for gasoline shifts rightward : Suppose the US demand curve for gasoline shifts rightward, and the U.S. supply curve for gasoline remains unchanged. As a result, the price of gasoline increases by 9 percent, and the equilibrium quantity increases by 3 percent. Which of the followin..

Find efficient equilibrium and the level of marginal profit : Suppose the demand for a chemical is given by Q=100-3P, where quantity is measured in pounds. The market supply is given by MC = 6. Assume the social marginal cost of this product is $8 per unit. a. Find the competitive equilibrium and the level of m..

Levied to reduce consumption of goods-to raise tax revenue : Taxes on goods and services like alcohol, tobacco, and gambling winnings (and maybe someday sugary foods and marijuana) are levied to reduce consumption of such goods and to raise tax revenue (

Determine the test statistic : For each data set, determine the test statistic, T +. What percentage of the observations in each data set has plus signs? Informally, what does this indicate about the possibility that the true median in each case is as postulated?

The prescribed accounting treatment for stock dividends : The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by small stock dividends and benefit by the market value of their additional shares. Explain this statement. Is it logical?

User Account

All Pages