Question

The price-demand equation for gasoline is 0.6x + 2p = 85 where p is the price per gallon in dollars and x is the daily demand

0 0
Add a comment Improve this question Transcribed image text
Answer #1


0.64 +2p=85 a) demand x as a function of frice 0.6 x +2p=85 0.6x = 85-21 x = 85-21 0.6 b) Price = $5 pergallon. - x= = 85-

Add a comment
Know the answer?
Add Answer to:
The price-demand equation for gasoline is 0.6x + 2p = 85 where p is the price...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The price elasticity of demand for gasoline is estimated to be -0.2. Two million gallons are sold daily at a price of $1...

    The price elasticity of demand for gasoline is estimated to be -0.2. Two million gallons are sold daily at a price of $1. a. Find the demand function for gasoline, assuming it is linear, with gasoline measured in millions of gallons. b. Graph the demand curve.

  • The demand for gasoline in a country is given by QD = 15 – 2p and...

    The demand for gasoline in a country is given by QD = 15 – 2p and the supply by QS = 3p, where the price is in dollars per gallon. The negative externality associated with carbon is $1 per gallon. In an unregulated market for gasoline, the deadweight loss associated with the externality is?

  • Suppose the demand for gasoline in the United States is Q = 500.8 - 7.8P +...

    Suppose the demand for gasoline in the United States is Q = 500.8 - 7.8P + 0.027Y - 19.6MPG, where Q is annual U.S. gasoline consumption in millions of gallons per day, P is the retail price of gasoline in $/gallon, Y is real disposable income in billions of 2012 dollars, and MPG is the fleet efficiency in miles per gallon. Assume in 2015 P = 2.50, Y = 14600, and MPG = 24.7. Note that MPG is the long-run...

  • Daily demand for gasoline at Billy-Bob's Mobile Station is described by D(p) = 980-300p, where p...

    Daily demand for gasoline at Billy-Bob's Mobile Station is described by D(p) = 980-300p, where p is the price in dollars. Billy-Bob's supply is S(p) =-2980 + 3000p.Suppose that the state government places a tax of 18 cents on every gallon of gasoline sold. What is the deadweight loss resulting from the tax?

  • Suppose that the long-run price elasticity of demand for gasoline is 0.40. Assume that the price ...

    Suppose that the long-run price elasticity of demand for gasoline is 0.40. Assume that the price of gasoline is currently $4.00 per gallon, the quantity of gasoline is 140 billion gallons per year, and the federal government decides to increase the excise tax on gasoline by $1.00 per gallon. Suppose that in the long run the price of gasoline increases by $0.70 per gallon after the $1.00 excise tax is a. Using the midpoint formula, after the tax is imposed,...

  • AmeriBabe manufactures and sells rubber baby buggy bumpers. The price-demand equation is: where p is the price (in dollars) at which z rubber baby buggy bumpers can be sold. a. What is the demand if...

    AmeriBabe manufactures and sells rubber baby buggy bumpers. The price-demand equation is: where p is the price (in dollars) at which z rubber baby buggy bumpers can be sold. a. What is the demand if the price is $2280? The demand isbumpers. p 2600-8x Preview b. The cost to produce x rubber baby buggy bumpers is given by C() 900680 and the new revenue function is R(z)(2600 8a) How many rubber baby buggy bumpers should be manufactured and sold to...

  • The demand for gasoline is represented by: P = -0.9 Qd + 8.4 The supply of...

    The demand for gasoline is represented by: P = -0.9 Qd + 8.4 The supply of gasoline is represented by: P = 1.4Qs + 2.2 Quantities are in millions of gallons sold per seek. Now suppose that the government levies a $ 0.5 per unit excise tax to be paid by the sellers on each gallon. Calculate the portion of the tax paid by the sellers and enter the answer using 2 decimal places.

  • Suppose that the long-run price elasticity of demand for gasoline is -0.45. Assume that the price...

    Suppose that the long-run price elasticity of demand for gasoline is -0.45. Assume that the price of gasoline is currently $4.00 per gallon, the quantity of gasoline is 140 billion gallons per year, and the federal government decides to increase the excise tax on gasoline by $1.00 per gallon. Suppose that in the long run the price of gasoline increases by $0.60 per gallon after the S1.00 excise tax is imposed. a. Using the midpoint formula, after the tax is...

  • Suppose that the long-run price elasticity of demand for gasoline is 0.45. Assume that the price...

    Suppose that the long-run price elasticity of demand for gasoline is 0.45. Assume that the price of gasoline is currently $4.00 per gallon, the quantity of gasoline is 140 billion gallons per year, and the federal government decides to increase the excise tax on gasoline by $1.00 per gallon. Suppose that in the long run the price of gasoline increases by $0.60 per gallon after the $1.00 excise tax is imposec. a. Using the midpoint formula, after the tax is...

  • 17.) The market demand function for ice cream is o' = 8 - 2P and the...

    17.) The market demand function for ice cream is o' = 8 - 2P and the market supply function for ice cream is o® = 6P-3, where both quantities are measured in millions of gallons per year. What is the producer surplus at the competitive market equilibrium? $6 89 million $2.29 million $9.18 million $13.5 million

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT