Question
If the price of gasoline rises, when is the price elasticity of demand likely to be the highest?
 
A.immediately after the price increases
B.one month after the price increase
C.three months after the price increase
D.one year after the price increase
Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
Not helpful? See similar books
Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
Demand And Elasticity. 6TY
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Economics Q&A

Find answers to questions asked by students like you.

Q: If the price elasticity of supply is 2, and a price decrease led to a 16% decrease in quantity…

A: The price elasticity of supply can be representing as follows:

Q: If the price of a good increase by 50 percent and the quantity demanded decreases by 10 percent what…

A: Price elasticity of demand measures the response in demand of a good when price of that good…

Q: The own price elasticity of demand for a certain product is -1.2. If the price falls by 5 percent,…

A: Given Information: Price elasticity of demand (Ep) = -1.2 Price falls by 5% = -5 The formula to…

Q: The price elasticity of demand for personal computers is estimated to be −2.5. If the price of…

A: Price elasticity of demand measures the change in the quantity demand due to the change in the…

Q: The price elasticity of demand for personal computers is estimated to be −2.5. If the price of…

A: Elasticity = -2.5  Decline in price = 20%

Q: If the price elasticity of supply is -0.5 and the price increases by 10%, what is the change in…

A: Here we calculate the change in quantity supplied by using price elasticity , so the calculation of…

Q: If the price elasticity of demand for canned soup is estimated at 1.62. What happens to sales…

A: If the price elasticity of demand for canned soup is estimated at 1.62. That means the good is price…

Q: When the price of commodity falls by 50% and the quantity increases by 100 %find the price…

A: Click to see the answer

Q: If the price elasticity of demand of for gasoline is 2, then a 15% decrease in quantity demanded is…

A: The elasticity of demand = %change in quantity demanded / %change in the price

Q: If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded…

A: e = -1.8

Q: If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded…

A: Price elasticity of demand is the measurement of change in quantity demanded with the change in…

Q: If the price elasticity of demand is -0.5 and the income elasticity is +0.3 when what will be the…

A: Price elasticity of demand is a measure of the change in the quantity purchased of a product in…

Q: Suppose the price elasticity of demand for a good is – 0.2. If there is a 6% increase in the price…

A: Click to see the answer

Q: When the quantity demanded increases by 100% and the price of commodity falls by 50% find the price…

A: The law of demand is the principle in which the relationship between price and quantity demanded of…

Q: If demand falls by 5% due to an increase in income by 20%, calculate the income elasticity of…

A: Formula for income elasticity of demand: ei = Percentage change in quantity demanded / Percentage…

Q: If demand falls by 5% due to an increase in income by 20%, calculate the income elasticity of…

A: Given data: Demand falls by 5% Increase in income by 20%

Q: If demand falls by 5% due to an increase in income by 20%, calculate the income elasticity of…

A: Given data: Demand falls by 5% due to an increase in income by 20%.

Q: If demand falls by 5% due to an increase in income by 20%, calculate the income elasticity of…

A: Click to see the answer

Q: f Starbucks raises its price by 7 percent and McDonald’s experiences a 0.3 percent increase in…

A: Cross elasticity is an important concept to study the effect of changes in the price of one product…

Q: The demand for a car wash is x = 600 − 40p, where the current price is $1. Find the price elasticity…

A: Given  We know that, Now, And for p = 1, we have X = 600 – 40*1 = 560

Q: Q) The Barrington T-shirt Company recently raised the price of its shirts from $2.50 to $3.00. At…

A: Answer: Introduction: According to the question, the price of the T-shirt has increased from $2.50…

Q: the price elasticity of demand for a product is -.5. When its price is increased by 2%. Quantity…

A: The price elasticity(Ep) of demand(dd) measures that if there is any variation in the prices(P) of a…

Q: The price elasticity of supply is1.2​,and price increases by 10percent. As a​ result, the quantity…

A: The elasticity of supply sets up a quantitative connection between the price of an item and it's…

Q: If the price elasticity of supply is 1.5, and a price increase led to a 3% increase in quantity…

A: Price elasticity of supply measures the responsiveness to the supply of a good or service after a…

Q: If the price elasticity of demand of for gasoline is - 1.8, then a 15% decrease in quantity demanded…

A: Price elasticity of demand has the following formula ed= % change in quantity demanded / % change in…

Q: Calculate the price elasticity of demand, if there is a decline in quantity from 55 to 45 a week and…

A: Elasticity of demand is used to measure the responsiveness of change in the quantity demanded of a…

Q: Calculate the price elasticity of supply when price rise by 3% and the supply rise by 9%

A: Click to see the answer

Q: Calculate the price elasticity of supply when price rise by 3% and the supply rise by 9%

A: # The price elasticity of supply is a tool which measures how much the supply changes whenever there…

Q: When the price of gasoline rises by 3 % the quantity demanded falls by 0.12 % . Calculate the price…

A: Here, Given information is: Percentage change in the price of gasoline: 3% Percentage change in the…

Q: If the price of gasoline is $2.00 and the price elasticity of demand 0.4, what is the new price if…

A: The price elasticity of DD (demand) can be defined as when the change in quantity (Q) demanded is…

Q: How does the price elasticity of demand change if you move along the demand schedule from $10 to $8…

A: The price elasticity of demand can be calculated as follows: When price falls from $10 to $8, the…

Q: As the price of burger rises from $10 to $12, the quantity demanded of burger rises from 100 to 114…

A: Price elasticity of demand refers to responsiveness of quantity demanded due to change in price of…

Q: Why does price elasticty of demand is negligible? Explain.

A: Answer: Price elasticity measures the changes in the quantity demanded due to the changes that…

Q: suppose the price is elasticity of demand for a good is -0.6. If it's price rises by 10% then by…

A: # Price elasticity of demand measures the degree of change in quantity demanded due to change in…

Q: If price elasticity of supply of a good = 1.45 , how do you interpret this? If price elasticity of…

A: In most cases, sensitivity is measured by changing the amount required in connection with changes in…

Q: If price elasticity of supply is 1.5 and price increases by 3 percent, quantity supplied will…

A: Price elasticity of supply measures the responsiveness of change in quantity supplied to change in…

Q: 20.Price Elasticity of Demand of a good is (-)1. At a given price, the consumer buys 60 units of the…

A: As we know that when price decreases demand increases so by using the elasticity formula we can find…

Q: If the supply elasticity of pork is 0.46, by how much will quantity supplied increase if price…

A: Price elasticity of supply measures the responsiveness to the supply of a good or service after a…

Q: Suppose you observe the price and quantity demanded of a good at two dates. TH percentage change in…

A: Suppose that we observe the price and quantity demanded of a good at two dates .

Q: If price elasticity of supply is 1.5 and price increases by 3 percent, quantity supplied will…

A: Price elasticity of supply measures the responsiveness of quantity supplied to change in price. The…

Q: Assume the price elasticity of supply for plastic products is 2.5. How much would price have to rise…

A: Products are the Tangible items that are purchased by the consumers for their personal use.

Q: The elasticity of demand is 1 and the fall in price is 10%  Calculate the percentage rise in demand

A: # The formula for Elasticity of demand can be written as:- Elasticity of demand = Percentage change…

Q: The price of shampoo is 75 per dozen, quantity demanded is 30 dozen. If elasticity of demand is 3.…

A: Price elasticity of demand is given as Ed= Percentage change in quantity demanded/ percentage change…

Q: If incomes rise by 12 per cent and demand rises by 20 per cent, what is income elasticity of demand?…

A: Income elasticity of demand= percentage change in quantity demanded / percentage change in income.

Q: If an increase in price of a for bag Results from 90 to 120 an increase in quantity supplied of bag…

A: Click to see the answer

Q: Explain the concept of price elasticity of demand.

A: Economics is a social science that studies human behavior in terms of their unlimited wants with…

Q: Explain the concept of price elasticity of demand.

A: One of the important concepts of the economics is price elasticity of demand. It measures the change…

Q: If a price of a commodity rises from 6 per unit to 7 per unit consequently its supply increases by…

A: Click to see the answer

Q: Use the point method the price elasticity of demand for the demand curve P=200-2Q, when P=30 is A)3…

A: Given:  P=200-2Q It is given that P is 30. So, 30=200-2Q 2Q=170 Q=85 Here,  P=200-2Q2Q=200-PQ=100-P2

Q: 1. Given the demand function   P = 100 − Q Calculate the price elasticity of demand when the price…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a…

Knowledge Booster
Economics
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.
Recommended textbooks for you
  • Microeconomics: Principles & Policy
    Economics
    ISBN:9781337794992
    Author:William J. Baumol, Alan S. Blinder, John L. Solow
    Publisher:Cengage Learning
    Principles of Economics, 7th Edition (MindTap Cou...
    Economics
    ISBN:9781285165875
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Principles of Microeconomics (MindTap Course List)
    Economics
    ISBN:9781305971493
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
  • Principles of Macroeconomics (MindTap Course List)
    Economics
    ISBN:9781285165912
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Essentials of Economics (MindTap Course List)
    Economics
    ISBN:9781337091992
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Principles of Microeconomics
    Economics
    ISBN:9781305156050
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
  • Microeconomics: Principles & Policy
    Economics
    ISBN:9781337794992
    Author:William J. Baumol, Alan S. Blinder, John L. Solow
    Publisher:Cengage Learning
    Principles of Economics, 7th Edition (MindTap Cou...
    Economics
    ISBN:9781285165875
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Principles of Microeconomics (MindTap Course List)
    Economics
    ISBN:9781305971493
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Principles of Macroeconomics (MindTap Course List)
    Economics
    ISBN:9781285165912
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Essentials of Economics (MindTap Course List)
    Economics
    ISBN:9781337091992
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Principles of Microeconomics
    Economics
    ISBN:9781305156050
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning