### Gas station is about to increase the price

##### Reference no: EM136649

Q1. Using the formula for β^1 and β^0, show what will happen to the estimator of the slope and intercept in the SLR model if y is multiplied by the constant k, and at the same time x is multiplied by the constant m.

Q2. At the local gas station, the price elasticity of demand for gasoline is 0.4 at the current price of \$3.50 per gallon and the current quantity demand of 6,000 gallons. The gas station is about to increase the price to \$3.85 per gallon. How many gallons of gas will be sold at this higher price?

### Write a Review

#### Marginal revenue product

Outline reasons why the marginal revenue product differs between workers in different jobs.

#### Entrepreneurship and capital venturing

Describe the Schumpeterian notion of "creative destruction"

What can you determine about consumer demand for your product from this information.

#### Mixed nash equilibrium of the game

In 2003, when music downloading first took off, Universal Music slashed the prices of CDs from an average of \$21 to an average of \$15.

#### Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

#### Production process requires labor and capital

The production process requires labor and capital as inputs. Labor costs \$6 per labor hour and capital costs \$12 per machine hour.

All costs of exhibiting movies are fixed except for the \$3.50 royalty payment you must make to the film distributor for each ticket sold.

#### Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

#### Differences between depository and nondepository

discuss the major types of financial intermediaries in the U.S. and illustrate the differences in the way assets and liabilities are recorded on their balance sheets

#### Hitting cafeterias across the country

Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.

#### Electoral competition model

You can suppose any single peaked preference which you want and Characterize the equilibria of the model.

#### Foundation for modern economic growth

When and where did modern economic growth first happen. What are the major institutional factors that form the foundation for modern economic growth. What do they have in common.