a Slurpico Department of Energy. Prices are in dollars and sales are in gallons per day and driven by the quantity of gallons demanded: following data for gasoline sales and prices in West Valley, Washington are 330 3.50 340 3.25 350 3.00 360 2.75 370 2.50 380 2.25 390 2.00 410 1.50 420 1.25 Sales 400 430 1.00 Price 1.75 Compute the price elasticity of demand when the price increases from $3.00 to $3.25 and determine what type of product gasoline is: (hint: use the midpoint method) Formula Calculation Answer Price elasticity of demand for gasoline is Compute the price elasticity of demand when the price increases from $1.25 to $1.50 and determine what type of product gasoline is: (hint: use the midpoint method) b. Formula Calculation Answer Price elasticity of demand for gasoline is When average gas prices are $1.50 a gallon, what does total revenue per day equal (remember, total revenue equals price times quantity)? C. Formula Calculation Answer d. When average gas prices are $3.00 a gallon, what does total revenue per day equal? Formula Calculation Answer

a Slurpico Department of Energy. Prices are in dollars and sales are in gallons per day and driven by the quantity of gallons demanded: following data for gasoline sales and prices in West Valley, Washington are 330 3.50 340 3.25 350 3.00 360 2.75 370 2.50 380 2.25 390 2.00 410 1.50 420 1.25 Sales 400 430 1.00 Price 1.75 Compute the price elasticity of demand when the price increases from $3.00 to $3.25 and determine what type of product gasoline is: (hint: use the midpoint method) Formula Calculation Answer Price elasticity of demand for gasoline is Compute the price elasticity of demand when the price increases from $1.25 to $1.50 and determine what type of product gasoline is: (hint: use the midpoint method) b. Formula Calculation Answer Price elasticity of demand for gasoline is When average gas prices are $1.50 a gallon, what does total revenue per day equal (remember, total revenue equals price times quantity)? C. Formula Calculation Answer d. When average gas prices are $3.00 a gallon, what does total revenue per day equal? Formula Calculation Answer

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter1A: Appendix: Working With Graphs

Section: Chapter Questions

Problem 1E

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