7. Let's use actual data from the United States to calculate the price elasticity of gasoline. Search the internet for the most recent edition of "This Week in Petroleum," published by the U.S. Energy Information Administration. Go to the data for "gasoline" and find the current price and quantity demanded. For price you can use the retail average price of regular gasoline for the entire U.S. For quantity use the data on "gasoline demand" in million barrels per day. Then use data for both these variables from one year ago to calculate the price elasticity of demand for gasoline. Show your calculations. Finally, search the internet to find at least two estimates of the elasticity of demand for gasoline. Comparing your value to those from the internet, do you think your estimate is reasonably accurate? If not, provide at least one reason why your estimate differs.

7. Let's use actual data from the United States to calculate the price elasticity of gasoline. Search the internet for the most recent edition of "This Week in Petroleum," published by the U.S. Energy Information Administration. Go to the data for "gasoline" and find the current price and quantity demanded. For price you can use the retail average price of regular gasoline for the entire U.S. For quantity use the data on "gasoline demand" in million barrels per day. Then use data for both these variables from one year ago to calculate the price elasticity of demand for gasoline. Show your calculations. Finally, search the internet to find at least two estimates of the elasticity of demand for gasoline. Comparing your value to those from the internet, do you think your estimate is reasonably accurate? If not, provide at least one reason why your estimate differs.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 8PA: The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase:...

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