Question
Suppose that when the price of gasoline is $3 per gallon, the total amount of gasoline supplied in the United States is 12 million barrels
Suppose that when the price of gasoline is $3 per gallon, the total amount of gasoline supplied in the United States is 12 million barrels per day. Also suppose that when the price of gas decreases to $2.25 per gallon, the total amount of gasoline supplied is 8 million barrels per day. Based on these numbers and using the simple formula, the price elasticity of supply of gasoline is:
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Contemporary Labor Economics
Authors: Campbell R. McConnell, Stanley L. Brue, David Macpherson
11th Edition
1259290602, 1259290603, 978-1259290602
