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? A) The price elasticity of supply for gasoline is roughly 0.33.
B) The price elasticity of supply for gasoline is roughly 3.
C) The price elasticity of demand for gasoline is roughly 0.33.
D) The price elasticity of demand for gasoline is roughly -3.
Question 2
If the MSB/MCA graph indicates that an emissions fee of 10 per unit would lead to the optimum level of emissions, but the government set a fee of 5 per unit, emissions would
A) not be reduced at all.
B) not occur at all.
C) be above the optimum level, but curtailed somewhat from what they would have been with no fee at all.
D) be above the optimum level by 50.
E) be below the optimum level by 50.
A container with gasoline containing alcohol. Notice the separation line where the alcohol-water ...
E85 has 85% ethanol mixed with 15% gasoline.
A gasoline direct-injection system injects fuel under high pressure directly into the combustion ...
Unregulated populations "J-shaped curve"
The demand for cheap coal to generate electrical power is rising
A 600-kg car is going around a curve with a radius of 120 m that is banked at an angle of 20° ...