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)
How many types of triangles are classified based on their side lengths?
+
What is the volume of a rectangular solid with length L, width W, and height H? (Volume = L x W x H)
+
What is the result of multiplying 37 by 12 and subtracting 256?
+
New questions in Mathematics
A=m/2-t isolate t
Using a remarkable product you must factor the expression: f(x) =36x^2-324 and you are entitled to 5 steps
The patient is prescribed a course of 30 tablets. The tablets are prescribed “1 tablet twice a day”. How many days does a course of medication last?
If you have a bag with 18 white balls and 2 black balls. What is the probability of drawing a white ball? And extracting a black one?
A consulting company charges a fee of $50 per hour for consulting. If their monthly fixed costs are $1,000 and they want to make a monthly profit of $2,500, how many consulting hours should they bill per month?
Suppose the horses in a large stable, have a mean weight of a 807 pounds and a variance of 5776. What is the probability that the mean weight of the sample of horses with differ from the population mean by greater than 18 pounds is 41 horses are sampled at random from the stable round your answer to four decimal places.
Subscribers to the FAME magazine revealed the following preferences for three categories: Fashion 30, Athletics 24 and Business 15. Following these frequencies of observation, compute the chi-square test statistic. At the 0.05 level of significance, would you conclude they are similar?
∫ √9x + 1 dx
Show this compound proposition to be true or false. Paris is the capital of England or Rome is the capital of Italy
The question is using rule 72 determine Kari wants to save 10,000 for a down payment on a house. Illustrate the difference in years it will take her to double her current 5,000 savings based on 6%, 12% and 18% interest rate .
X~N(2.6,1.44). find the P(X<3.1)
A car travels 211 miles on 15 gallons of gasoline. The best estimate of the car’s miles per gallon is?
Twenty‐five students in a class take a test for which the average grade is 75. Then a twenty‐sixth student enters the class, takes the same test, and scores 70. The test average grade calculated with 26 students will
A diamond ring was reduced from $999.99 to $689.99. Find the percent reduction in the price. Round the answer to the nearest tenth of a percent, if necessary.
Find the vertex F(x)=x^2-10x
7- A printing company found in its investigations that there were an average of 6 errors in 150-page prints. Based on this information, what is the probability of there being 48 errors in a 1200-page job?
2+2020202
Marc, Jean and Michelle have traveled a lot. Marc drove twice as much as Jean, but it was Michelle who drove the most with 100km more than Marc. They respected their objective of not exceeding 1350km of distance. How far did John drive?
5a-3.(a-7)=-3
A triangle is cut by a line s parallel to the base in such a way that it divides the side of the triangle into parts in the ratio of 2 : 3. Find the other side of the triangle if it is known that the line s divides it into parts whose length is 5 cm.