If the Quantity Demanded Is 5,000 Gallons at $3

question 184

Essay

If the quantity demanded is 5,000 gallons at $3.00 per gallon, the price elasticity of demand for gasoline is 0.5, and the price rises to $3.15 per gallon, how many gallons of gas will be sold at this higher price?

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Definitions:

Liquidity Ratios

Financial metrics used to evaluate a company's ability to pay off its short-term liabilities with its liquid assets.

Current Assets

Financial assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Current Liabilities

Short-term financial obligations due within one year or within the company's operating cycle.

Asset Management Ratios

Financial metrics used to assess how efficiently a company manages its assets to generate revenue.