Question

I assume that the price of a car is constant and that 30 cars are sold per month in a small town. On the other hand, the price of gasoline rises from 15 to 20 pesos per liter, there is no other factor that influences the purchase plans and the number of cars sold drops to 28 per month. a) What is the cross elasticity of demand for cars with respect to gasoline? b) According to the previous section, are cars considered a substitute or complementary good for gasoline?

52

likes
259 views

Answer to a math question I assume that the price of a car is constant and that 30 cars are sold per month in a small town. On the other hand, the price of gasoline rises from 15 to 20 pesos per liter, there is no other factor that influences the purchase plans and the number of cars sold drops to 28 per month. a) What is the cross elasticity of demand for cars with respect to gasoline? b) According to the previous section, are cars considered a substitute or complementary good for gasoline?

Expert avatar
Miles
4.9
114 Answers
Necesitamos encontrar la elasticidad cruzada de la demanda de los autos con respecto a la gasolina. La fórmula para la elasticidad cruzada es:

E_{A,G} = \frac{\Delta Q_A / Q_{A\text{original}}}{\Delta P_G / P_{G\text{original}}}

Donde:
- \Delta Q_A es el cambio en la cantidad demandada de autos.
- Q_{A\text{original}} es la cantidad original demandada de autos.
- \Delta P_G es el cambio en el precio de la gasolina.
- P_{G\text{original}} es el precio original de la gasolina.

Primero, calculamos los cambios:

\Delta Q_A = 28 - 30 = -2
Q_{A\text{original}} = 30
\Delta P_G = 20 - 15 = 5
P_{G\text{original}} = 15

Ahora, sustituimos en la fórmula de elasticidad cruzada:

E_{A,G} = \frac{(\frac{-2}{30})}{(\frac{5}{15})}

E_{A,G} = \frac{-\frac{2}{30}}{\frac{5}{15}}

E_{A,G} = \frac{-\frac{2}{30}}{\frac{1}{3}}

E_{A,G} = -\frac{2}{30} \times \frac{3}{1}

E_{A,G} = -\frac{6}{30}

E_{A,G} = -\frac{1}{5}

Los autos y la gasolina se consideran bienes complementarios porque la elasticidad cruzada es negativa.

El resultado final en formato simplificado es:
a) E_{A,G} = -\frac{1}{7}

b) Complementario

Frequently asked questions (FAQs)
What is the limit of (3x^2 - 5x + 2)/(4x^2 + x - 6) as x approaches 2?
+
Math question: Use factoring and the distributive property to simplify the expression 3x^2 + 6x + 9.
+
What is the sine of an angle in a right triangle given that the opposite side measures 10 units and the hypotenuse measures 15 units?
+
New questions in Mathematics
Add. 7/w²+18w+81 + 1/w²-81
-442/c+5=26 what is c?
Let X be a discrete random variable with range {1, 3, 5} and whose probability function is f(x) = P(X = x). If it is known that P(X = 1) = 0.1 and P(X = 3) = 0.3. What is the value of P(X = 5)?
what is 9% of 307
2.5 / 21.85
Which of the following is the product of multiplying twenty-seven and twenty-five hundredths by nine and twenty-seven hundredths?
The director of a company must transfer 6 people from the human resources department to the sales department, in order to sustain sales during the month of December. What is the probability that he will transfer only 2 of them?
The main cost of a 5 pound bag of shrimp is $47 with a variance of 36 if a sample of 43 bags of shrimp is randomly selected, what is the probability that the sample mean with differ from the true mean by less than $1.4
Analyze the following situation Juan is starting a new business, he indicates that the price of his product corresponds to p=6000−4x , where x represent the number of tons produced and sold and p It is given in dollars. According to the previous information, what is the maximum income that Juan can obtain with his new product?
Calculate the minimum size of a simple random sample assuming a sampling error of 5% assuming that the population size is 100 elements
Three machines called A, B and C, produce 43%, 26% and 31% of the total production of a company, respectively. Furthermore, it has been detected that 8%, 2% and 1.6% of the product manufactured by these machines is defective. a) What is the probability that a product is not defective? b) A product is selected at random and found to be defective, what is the probability that it was manufactured on machine B?
9.25=2pi r solve for r
Fill in the P(X-x) values to give a legitimate probability distribution for the discrete random variable X, whose possible values are -5 ,3 , 4, 5 , and 6.
Derivative of 2x
Let x be an integer. Prove that x^2 is even if and only if is divisible by 4.
A property sold for $745,000 in a co-brokered transaction. The seller has agreed to pay a 7% commission to the listing firm. The listing firm has agreed to equally split the commission with the selling firm. If the buyer’s broker will receive 8% of the selling firm’s commission, how much commission will the buyer’s broker receive? $14,900 $3725 $$37250 $18625
A given initial capital in simple interest at the annual rate and for 27 months produced the accumulated capital of 6600 um if the same capital had been invested at the same rate but during 28 months the said accumulated capital would be increased in an amount corresponding to 0.75% of the initial capital Calculate the initial capital and the annual rate at which it was invested
Salut👋🏻 Appuie sur "Créer une nouvelle tâche" pour envoyer ton problème de mathématiques. Un de nos experts commencera à travailler dessus immédiatement !
x²-7x+12=0
25) Paulo saves R$250.00 per month and keeps the money in a safe in his own home. At the end of 12 months, deposit the total saved into the savings account. Consider that, each year, deposits are always carried out on the same day and month; the annual yield on the savings account is 7%; and, the yield total is obtained by the interest compounding process. So, the amount that Paulo will have in his savings account after 3 years, from the moment you started saving part of your money monthly, it will be A) R$6,644.70. B) R$ 9,210.00. C) R$ 9,644.70. D) R$ 10,319.83. E) R$ 13,319.83