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Home Q & A Board Other Fields Homework Help Business Economics
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yuknam yuknam
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4 years ago

Question 1.

What factors would make you more sensitive or less sensitive to price when purchasing gasoline?



Question 2.

Suppose the price of gasoline is $3.50 per gallon, the quantity of gasoline demanded is 150 billion gallons per year, the price elasticity of demand for gasoline is -0.06, and the federal government decides to increase the excise tax on gasoline by $1.00 per gallon, which increases the price of gasoline by $0.75 per gallon. What is the new equilibrium quantity of gasoline demanded after the tax is imposed?



▸

109.72 billion gallons per year



▸

127.25 billion gallons per year



▸

148.27 billion gallons per year



▸

161.61 billion gallons per year

Textbook 
InMicro

InMicro


Edition: 1st
Authors:
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Niquegirl21!Niquegirl21!
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yuknam Author
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4 years ago
You make an excellent tutor!
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