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

question 69

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? (Use the conventional method, not the midpoint method, of calculating price elasticity of demand.)

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Definitions:

Evolutionary Theory

A scientific theory that explains the diversity of life on Earth through the processes of natural selection, variation, competition, and inheritance.

General Relativity Theory

A fundamental theory in physics proposed by Albert Einstein, describing the force of gravity as a result of the curvature of spacetime caused by mass.

Gestalt Psychology

Perspective in which the whole influences constituent parts rather than vice versa.

Social Psychology

The examination of the impact that the genuine, envisioned, or hinted existence of others has on individuals' cognitive processes, emotional experiences, and conduct.