As Gasoline Prices Soar, Drivers Slowly AdaptAs gas prices rose in March 2008, people drove shorter distances than in March 2007. Realizing that prices are not going down, drivers adapted to higher energy costs. We spend 3.7 percent of disposable income on transportation fuels. Howmuch we spend on gasoline depends on the choices we make: what car we drive, where we live, how much time we spend driving, and where we choose to go. For many people, higher energy costs mean fewer restaurant meals, deferredweekend outings with the kids, less air travel, and more time closer to home.Source: International Herald Tribune, May 23, 2008List and explain the elasticities of demand that are implicitly referred to in the news clip.Why, according to the news clip, is the demand for gasoline inelastic?Which of the following elasticities are implicitly referred to in the news clip?One of the factors cited in the news clip that makes the demand for gasoline inelastic isO A. Income elasticity of demand for gasoline, price elasticity of supply of gasoline, and cross elasticity of demandfor restaurant meals with respect to the price of gasolineA. the small percentage of income spent on gasolineB. the large number of substitutes for gasolineB. Price elasticity of demand for gasoline, income elasticity of demand for gasoline, and cross elasticity of demandfor restaurant meals with respect to the price of gasolineC. the high cross elasticity of demand between gasoline and how much time we choose to driveD. the rise in the price of gasolineC. Cross elasticity of demand for restaurant meals with respect to the price of gasoline, price elasticity of demandfor gasoline, and price elasticity of supply of gasolineD. Price elasticity of supply of gasoline, price elasticity of demand for gasoline, and income elasticity of demand forgasoline.....

In a market, elasticity of demand refers to the change in demand or quantity demanded due to change…

As Gasoline Prices Soar, Drivers Slowly Adapt As gas prices rose in March 2008, people drove shorter distances than in March 2007. Realizing that prices are not going down, drivers adapted to higher energy costs. We spend 3.7 percent of disposable income on transportation fuels. How much we spend on gasoline depends on the choices we make: what car we drive, where we live, how much time we spend driving, and where we choose to go. For many people, higher energy costs mean fewer restaurant meals, deferred weekend outings with the kids, less air travel, and more time closer to home. Source: International Herald Tribune, May 23, 2008 List and explain the elasticities of demand that are implicitly referred to in the news clip. Why, according to the news clip, is the demand for gasoline inelastic? Which of the following elasticities are implicitly referred to in the news clip? One of the factors cited in the news clip that makes demand for gasoline inelastic is O A. Income elasticity of demand for gasoline, price elasticity of supply of gasoline, and cross elasticity of demand for restaurant meals with respect to the price of gasoline O A. the small percentage of income spent on gasoline O B. the large number of substitutes for gasoline O B. Price elasticity of demand for gasoline, income elasticity for restaurant meals with respect to the price of gasoline f demand for gasoline, and cross elasticity of demand OC. the high cross elasticity of demand between gasoline and how much time we choose to drive O D. the rise in the price of gasoline Oc. Cross elasticity of demand for restaurant meals with respect to the price of gasoline, price elasticity of demand for gasoline, and price elasticity of supply of gasoline O D. Price elasticity of supply of gasoline, price elasticity of demand for gasoline, and income elasticity of demand for gasoline

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section5.5: Application 5: Why Is Medical Care So Expensive?

Problem 1ST