« previous next »

Author Question: Draw a graph to illustrate the effect of higher gasoline prices on the demand for large SUVs. What ... (Read 81 times)

cabate

  • Hero Member
  • *****
  • Posts: 537
on: Jun 30, 2018
Draw a graph to illustrate the effect of higher gasoline prices on the demand for large SUVs. What is the relationship between gasoline and SUVs?
 
  What will be an ideal response?

Question 2

Suppose that you lend 1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the money?
 
  A) the nominal interest rate that would have been earned on the money
  B) There is no cost.
  C) the implicit cost of the money
  D) the real interest rate that would have been earned on the money
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
Buy Test-Bank


tashiedavis420

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 30, 2018
Answer to Question 1

Gasoline and SUVs are complements. When the price of gasoline rises it becomes more expensive to drive an SUV, and so the demand for SUVs is likely to decrease (people may switch to smaller, more fuel-efficient vehicles). Note that as a result of the decrease in demand for SUVs their price should decrease and so should the quantity of SUVs sold.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

cabate

  • Hero Member
  • *****
  • Posts: 537
Reply #2 on: Jun 30, 2018
Correct answers!


tashiedavis420

  • Sr. Member
  • ****
  • Posts: 329
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

(a) Large buttress roots in a tropical rain forest (a) Large buttress roots in a tropical rain forest
Large intestine. Large intestine.
Small and large intestines Small and large intestines
Progression Graph: Fitness Plan Progression Graph: Fitness Plan
The Effect of Temperature on delta G for a process or reactions The Effect of Temperature on delta G for a process or reactions
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Video: Sickle Cell Anemia

For a complete list of videos, visit our video library