Why the tepid response to higher gasoline prices

Assignment Help Econometrics
Reference no: EM131311916

Why the tepid response to higher gasoline prices? Most studies report that when U.S. gasoline prices rise by 10 percent, the quantity purchased falls by 1 to 2 percent. In September 2005, the retail gasoline price was $2.90 a gallon, about $1.00 higher than in September 2004, but purchases of gasoline fell by only 3.5 percent.
Calculate the price elasticity of demand for gasoline implied by what most studies have found.

Reference no: EM131311916

Questions Cloud

Calculate the world price elasticity of supply of corn : Record U.S. corn crop, up 24%, is forecast The USDA reported that world corn production will be 9.9 percent greater than last year's, while U.S. corn production will be 24 percent larger. The price of corn is expected to be 46 percent higher than ..
Discuss some characteristics of quality data : Discuss some characteristics of quality data.Discuss how gaps (or breaches) are predicted and handled.Discuss how parities (or uniformities) identified and maintained?Identify and describe the gaps and parities in health information system data and i..
What is the weak formulation of the equation : Consider the boundary value problem -u"(x) + u(x) = -2 on(-1, 1) with u(-1) = 0 and u(1) = 0. 1. What is the weak formulation of the equation?
Write an economic paper about threshhold of inflation : Write an economic paper about Threshhold of inflation and economic growth in any develping country. The paper should be done by 4 sections: introduction, literature review, thretcal study and conclusion.
Why the tepid response to higher gasoline prices : Calculate the price elasticity of demand for gasoline implied by what most studies have found.
Sketch the function on the coordinate plane : Complete a table of values containing at least five points. Sketch the function on the coordinate plane. Describe the function's end behavior.
How did you find out about this organization : Include the name, location, and website (if available) of the organization.How did you find out about this organization?What would an individual need to do to be able to receive services at this organization?
Classify the function represented in the table : Use successive differences to classify the function represented in the table as linear, quadratic, or other. Show all your work.
Briefly summarize your chosen examples function and design : briefly summarize your chosen example's function and design. Next, determine whether or not you believe the example could function as effectively in a non-distributed architecture as it had in a distributed architecture.

Reviews

Write a Review

Econometrics Questions & Answers

  1 the discrete random variable x has probability

1. the discrete random variable x has probability distribution given bya. find the value of a. b.

  What is the average of the amounts

What is the average of the amounts ?

  What is the market equilibrium rental price per month

Suppose the demand and supply schedules for rental apartment in the city of Gotham are given below Monthly Rent $2500 $2000 $1500 $1000 $500 Apartment Demanded 10,000 12,500 15,000 17,500 20,000

  Identify the equilibrium point and price level

Identify the equilibrium point and price level. Illustrate how fiscal policy can close the contractionary gap.

  Compute the ratio of average wealth to median wealth

The Federal estate tax redistributes wealth in two ways: by encouraging charitable giving, which reduces the taxable estate, and by heavily taxing extraordinarily large estates and using the proceeds to fund government programs. Do you favor repea..

  What is the highest one-time cost of the move

What is the highest one-time cost of the move (including direct and psychic costs) for which the worker is still willing to migrate from Dayton, OH to Chicago, IL? Briefly explain your answer.

  Draw a game tree and predict the outcome

Draw a game tree and predict the outcome. From the industry perspective, do the benefits of advertising exceed the costs?

  Suppose that a mutual fund has an annual rate of return

suppose that a mutual fund has an annual rate of return that is normally distributed with a mean of 10 and a standard

  What is value of x in bundle with x apples and 23 bananas

Jean-Pierre consumes only apples and bananas. He prefers more apples to less, but he gets tired of bananas. If he consumes fewer than 28 bananas per week, he thinks that one banana is a perfect substitute for one apple

  Determine who will bear the burden of the tax

Assume that Milk is perfectly elastically. If there is a $.20 tax on milk, who will bear the burden of the tax Assume producers have the legal incidence. Graphically depict and describe. Shade the loss in consumer's surplus. and deadweight loss.

  What will a cash manager pay for the security

A cash manager purchases $1 million in commercial paper with one month remaining until maturity. At maturity, the cash manager will receive the face value of the security. What will he pay for this security

  In which years did argentina experience inflation

a. In which years did Argentina experience inflation In which years did it experience deflation (a falling price level) b. In which years did recessions occur In which years did expansions occur c. In which years do you expect the unmployment rate..

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