4. The average price of gasoline was given P77.50 per liter. We computed the average annual rate of increase in the price of gasoline to be 8.90%. If we assume that the price of gasoline will continue to inflate at this rate, how long will it be before we are paying P100.00 per liter?

4. The average price of gasoline was given P77.50 per liter. We computed the average annual rate of increase in the price of gasoline to be 8.90%. If we assume that the price of gasoline will continue to inflate at this rate, how long will it be before we are paying P100.00 per liter?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Table 7-4 Price Quantity Quantity Demanded Supplied $18 10 $15 4 $ 12 8 $9 12 $6 16 $3 20 O $3 O $6…

A: Equilibrium or market clearing price refers to the price level at which the quantity demanded is…

Q: If the marginal propensity to consume (MPC) = 0.80 and for every $10 change in G, I decreases by $4.…

A: The components of aggregate demand are: Consumption, Government purchases, investment and net…

Q: For an agency problem,what is entrenching investment?

A: An entrenching investment are those investments that are made by the manager with a motive on…

Q: a company's revenue function is given by - q³+370q² and its cost function is given 380 + 12q, where…

A: R(q) = -q3 + 370q2C(q) = 380 + 12q

Q: aiting times (in minutes) of customers in a bank where all customers enter a single waiting line and…

A: Mean is found out by dividing the sum of all observations by the number of observations.

Q: eview alternatives and assess the viability for increased use of energy in developed and developing…

A: The growing need for energy for its core and allied services. The continuous use of traditional…

Q: KOALA PLC manufactures a special type of computer chips and has 2 production plants located in…

A: Profit Maximization is defined as the phenomenon that businesses employ to reep most amount of…

Q: A country has a targeted rate of output growth of5%, a capital depreciation rate of2%, and a…

A: Keynesian economic growth theory is represented by the Harrod-Domar model. In economic growth, the…

Q: A polling company reported that 33% of 2286 surveyed adults said that they play football. Complete…

A: An Economic Survey refers to a snapshot of the significant economic changes that have usually taken…

Q: Starbucks is hoping to make use of its excess restaranunt capacity in the evenings by experimenting…

A: We show that Hidden costs are costs that are not readily apparent and usually remain unpredictable.…

Q: QUESTION 3 Greenhouse gases are O uniformly mixed pollutants O stock pollutants O gasses the…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Compared to a competitive firm, a monopoly will ... (select all correct answers) A. produce an…

A: In a competitive market, the firm produce where P = MC P is price MC is Marginal cost. A monopoly…

Q: ph, show how an unaccounted-for negative externality results in inefficiency

A: Externalities refers to the side effects of economic activities that are not accounted for or such…

Q: Assume a demand curve for coffee; Which of the following would NOT shift the demand curve for…

A: Shift in demand is associated with the change in components of demand other than price. When there…

Q: Determine the Gini coefficient and the Gini index. (Note: E. N. Wolff calculated the Gini coef-…

A: Gini index is represented through a graphical representation known as Lorenz Curve. The % of income…

Q: What are 2-3 products and/or services that have been improved or introduced in recent years by banks…

A: The 2-3 products and/or services that have been improved or introduced in recent years by banks due…

Q: Consider a market where the price of elasticity of the demand for streaming services is -0.6, the…

A: Income elasticity of demand: Income elasticity of demand for a good refers to the percentage change…

Q: Refer to Figure 8-3. What is the equilibrium price and quantity before the tax? P1 and Q1 P2 and Q2…

A: Equilibrium is where demand equals supply. Tax leads to welfare loss. At equilibrium , Total…

Q: Determine whether the scenarios below lead to economies, diseconomies of scale or neither: A.…

A: Economics matters in the investigation of shortage and its suggestions for the utilization of…

Q: What is the opportunity cost of taking this Intro to Microeconomics course at NYU? What is the…

A: In economic terms, cost can be classified as explicit and implicit cost. Explicit cost refers to the…

Q: The given data represent the number of people from a town, aged 25-64, who subscribe to a certain…

A: In skewness , the data value trail on one side. The skewness value can be positive , negative ,…

Q: Firm A produces 300 saucepans and the Marginal Cost of the 300th unit is $160 while the Marginal…

A: A given that firm is producing 300 units with marginal cost of 160 and marginal revenue is 600 of…

Q: on is caused by a constant increase in the money supply. a high rate of growth in the money supply.…

A: Money supply refers to the currency and demand deposit. A rise in the money supply which is above…

Q: Identify and explain who will make and lose money from this tariff. Identify the people and…

Q: In 2003, the economy of Microtania had an aggregate demand and aggregate supply according to the…

A: Equilibrium is where demand equals supply. In short run , Equilibrium is where Aggregate demand…

Q: In the Mortensen-Pissarides of the job finding rate and a(n) Increase; Decrease No change; Decrease…

A: Mortensen-Pissarides model of unemployment is based on the idea of time gap that occurs when the…

Q: Compound Interest. Determine the future value of $700 which is invested at 10% interest which is…

A: Introduction: Given the present value = $700 Interest rate = 10% Time period = 8 years

Q: The aggregate production function is Y = 2KL. There are 36 units of capital and 25 units of labor.…

A: Given information: Y = 2KL Where Y is the aggregate output K is capital L is labor…

Q: Discuss case study “In the News …Fed Economist: “No Evidence That QE Works” as Central Bank Starts…

A: Introduction The Federal Reserve sets U.S. monetary policy to promote maximum employment and stable…

Q: Refer to the sample data for polygraph tests shown below. If one of the test subjects is randomly…

A: Probability shows the chances of getting the outcome. Probability = No. of favourable outcome ÷…

Q: Explain how the international movement of products and of factor inputs promotes an equalization of…

A: The process of inexpensive manufacturing inputs becoming more costly while expensive inputs becoming…

Q: Q. 3 An amount of 8000 $ is deposited into an account with 6% annual interest. Calculate the term of…

A: The term depreciation refers to an accounting method used to allocate the cost of a tangible or…

Q: National income accounting deals with the aggregate measure of the outcome of economic activities.…

A: The final worth of all the products and services generated in an economy during a specific time…

Q: High Price Low Price Firm A High Price A = $250 B = $250 A = $200 B = $325 Low Price A = $325 B =…

A: The payoff matrix is table that represents the outcomes of game. The Dominant strategy is the best…

Q: Suppose that a market is described by the following supply and demand equations: Qs = 2P, Qd = 300 -…

A: In the free market, equilibrium price and quantity is determined by the forces of demand and supply…

Q: The Sisyphean Company's common stock is currently trading for $27.25 per share. The stock is…

A: Growth rate is the rate at which the earning is growing. We have the formula : - P = Dividend /…

Q: 7. Taxes on particular goods discourage their consumption. Economists say that such taxes "distort…

A: Since you have asked multiple subparts we would be answering the first three for you. To get the…

Q: How do these economic indicators are affected by the government's fiscal policy, monetary and…

A: Economic indicators are the Various micro and macro level factor like consumption variables,…

Q: 7. Notepads and pens can be considered to be complements. Woodchips are an input to notepads, and…

A: Demand function: Demand function shows the maximum price the consumers are willing to pay to…

Q: Suppose that demand and supply of apples are described by the following equations: P = 100 - 3Q…

A: Introduction: The equilibrium quantity exists at a level where the demand curve and supply curve…

Q: Redo the problem in Question 2 under the assumption that the person has utility function u(c) =…

A: Given that; Wealth (W) = $500,000 Incase of flood W goes down by $50,000 (L) Probability of flood =…

Q: Pls help with thsi question I am stuck Given the image attatched: 1.Given the above Marginal…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: Assume that the relationship between test scores and the student-teacher ratio can be modeled as a…

A: We have relationships between the text score and student-teacher ratio and which can be modeled as a…

Q: Given the demand function D(p) = 200 – 3p², Find the Elasticity of Demand at a price of $5 At this…

A: An elasticity of demand determines how sensitive the quantity demanded will be to the price. It will…

Q: monopolist faces a demand curve Q = 500 – 10P and has the total cost curve ??(?) = 200 + 20? + ?2.…

A: Monopoly is the sole producer of a good thus having maximum market power hence acts as a price…

Q: The demand for a given good will decrease when the price of its substitute and the demand for a…

A: Definition of the substitute goods: Two goods x and y are said to be substitute goods if the demand…

Q: Draw a supply and demand diagram with this information: Please include the The price axis with a…

A: A demand curve depicts the relationship between price of a commodity and the quantity of commodity…

Q: Weak sustainability requires the maintenance of specific components of natural capital O natural…

A: Sustainability means use of available natural resources in most judicious manner so that sufficient…

Q: The model of national economy is characterised by the following data: Household consumption…

A: C = 400+0.9DI Ig = 200 G = 250 T = 150 DI = Y -T

Q: Explain in detail the process of Monetary Policy transmission of an increase in the cash interest…

A: Monetary Policy: Monetary policy is a central bank mechanism by which it controls the level of money…

Question

Show your complete solution and show what is given. Your final answer should be in 4 decimal places.

4. The average price of gasoline was given P77.50 per liter. We computed the average annual
rate of increase in the price of gasoline to be 8.90%. If we assume that the price of gasoline
will continue to inflate at this rate, how long will it be before we are paying P100.00 per
liter?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Final Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The monthly demand for ice cans being manufactured by Alpha Co. is 3,000 pieces. With a manual tool, the unit cutting cost is $25.00. An electrically operated tool was offered at a price of $250k and which will cut by 20% the unit cutting cost. How many months will the Co. be able to recover of the machine if they decide to buy the electrically operated tool now?
Because of general price inflation in our economy, the purchasing power of the dollar shrinkswith the passage of time. If the average generalinflation rate is expected to be 8% per year for theforeseeable future, how many years will it take forthe dollar’s purchasing power to be one-half of whatit is now?
Find the change in the savings level when the current savings are 26000 and the initial savings are 16800
E3 Your company plans to raise price on product A by 5% per year. Due to competition, sales volume from product A is expected to decline at 10% per year. Revenue will be $5M for this year. Alternatively, based on the projection from the marketing department, you may reduce the sales volume decline from 10% to 5% if the price is kept unchanged. The product will be discontinued at the end of year 5 for both scenarios. If the firm's TVOM is 10%, Determine the revenue cash flow streams for both alternatives. What is the Excel financial function to compute PW of the revenue streams?
8. Five years ago, an industrial engineer deposited $10,000 into an account and left it undisturbed until now. The account is now worth $25,000. a. What was the overall ROR during the 5 years? b. If the inflation over that period was 4% per year, what was the real ROR? C What is the buying power of the $25.000 now.compared to the buying power
EXERCISE-8 PRESENT ECONOMY 7. An 8-m wide concrete road pavement 500m long is to be constructed over a well-compacted gravel road, together with necessary concrete curbs and gutters on both sides. In order to put the subgrade on an even level grade, a 500 cubic meters of sand filling is necessary, over which the 25 cm concrete pavement will be placed. How much will the project cost, allowing 15% contingency, and assuming the following informations: Sand fill, including rolling and watering is P100.00 per cu. m., concrete curb and gutter is P120.00 per meter and concrete pavement is P220.00 per sq.m.
The cost of a first-class postage in 1970 was $0.06 and in year 2013 was $0.46. Determine the average annual rate of increase in the price of postage stamps during the years 1970 to 2013. A. 18.47% B. 4.851% C. 6.63% D. 4.84%
In the given question what will be the value of APS when APC is given as 0.842
Chris is a student at the University. He has an endowment of K2000 kwacha per month in period one and it is expected to increase to care K20 000 per month after he completed his studies. The loan and scholarship board has agreed to lend him money of K3000 every month which will enable Chris to increase his consumption to K5000 every month i) Calculate how much monthly consumption that Chris will be able to afford once he is done with his university studies? ii)Assume that the loan and scholarship board decided to charge interest of 5% and Chris chooses to remain a borrower, how will it affect Chris's monthly consumption in period two iii)Draw Chris's indifference Curve together we the intemporal budget constraint that shows his endowments, optimising outcomes in both period as depicted in (ii)
Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflationrate is 3.9 percent, and the combined MARR is 15 percent. Expenses currently run $14,500 per year. Assume thatexpenses are end-of-year payments.a. Determine the then-current dollar amounts for years 1, 2, 3, 4, and 5.b. Determine the constant dollar amount for years 1, 2, 3, 4, and 5.Year 2005 2006 2007 2008 2009Rate % 18.853% 15.995% 10.665% "16.220% "12.723%574 CHAPTER 12 / INFLATION EFFECTSc. Determine the PW of the then-current dollar amounts.d. Determine the PW of the constant dollar amounts.
Please no written by hand solution A homebuilder’s advertising had the caption, “Inflation to Continue for Many Years.” The ad explained that if one buys a home now for $297,000, and construction cost inflation continues at 7%, the home will be worth $819,400 in 15 years. Thus, by buying a new home now, one can realize a profit of $522,400 in 15 years. Do you find this logic persuasive? Explain. Please show excel formulas
aa.2 A new treatment facility will cost $25,000,000. It will operate for 25 years, and an annual cost of $1,000,000. After 25 years, the facility will be sold for $5,000,000. All estimates are in constant 2023 dollars. The MARR is 5%, and inflation is assumed to be 2.5%. a) Calculate i’ b) Use constant dollars to determine the present worth of costs (PWC) after inflation.