Determine elasticity of demand for gasoline

When the U.S. price elasticity of demand for gasoline is 1.0, the price elasticity of demand for gas sold through one of several gas stations along a busy highway: (w) less than 1.0. (x) 1.0. (y) greater than 1.0. (z) zero.

I need a good answer on the topic of Economic problems. Please give me your suggestion for the same by using above options.

View Complete Question

Related Questions in Microeconomics

Q : Pure economic profit on rate of return

Owners of corporate stock obtain pure economic profit only to the extent which the rates of return realized by owning the stock exceed the: (1) interest rate that would have been produced by other investments entailin

Q : Average variable costs of pure

Average variable costs per generic brick of this pure competitor equal approximately: (i) $.02 (2 cents per brick). (ii) $.04 (4 cents per brick). (iii) $.07 (7 cents per brick). (iv) $.09 (9 cents per brick).

Q : Maximizing firm profit conflicts with

Whenever maximizing the firm profit conflicts with self-interests of business managers, this can lead to the: (i) Principal-agent problems. (ii) Negative accounting gain. (iii) Maximization of the revenues. (iv) Negative economic gain.

Q : Revenue expenditure Why payment of

Why payment of interest is treated as revenue expenditure? Answer: Since it does not cause any decrease in the liability of government.

Q : Bond Ratings Fully explain the term

Fully explain the term Bond Ratings?

Q : Problem on decline of demand The

The automakers slashed prices and gave ‘zero percent financing’ throughout the year 2001-2003 recession. An expected outcome was: (1) The decline in the demand for utilized cars. (2) enhanced maintenance of older cars by their owners. (3) Buyers purchasing

Q : Oligopolistic pricing behavior

Collusive oligopolistic pricing behavior: (1) leads to natural monopoly when only some firms dominate an industry. (2) entails overt agreement among many firms in setting outputs and prices. (3) arises while contestable firms simultaneously raise or l

Q : Types of market economies What are the

What are the types of market economies?

Q : Normal market supply curves I have a

I have a problem in economics on Normal market supply curves. Please help me in the following question. The actuality that normal market supply curves slope upward is most obviously due to: (i) The lower costs incurred as production rises. (ii) Overti

Q : Price elasticity of demand when price

The Hobbit family buys 72 vegetarian specials yearly at a price of $3.00 each but would consume 192 yearly when the price dropped to $2.40. Therefore their price elasticity of demand is: (w) 4.09. (x) 2.05. (y) 6.15. (z) 0.26.

Discover Q & A

Leading Solution Library

Avail More Than 1426489 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1957512
Asked

3,689

Active Tutors

1426489

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment