Suppose the Price of Gasoline Is $1

question 93

Multiple Choice

Suppose the price of gasoline is $1.25 per litre, the quantity of gasoline demanded is 40 billion litres per year, the price elasticity of demand for gasoline is -0.06, and the federal government decides to increase the excise tax on gasoline by $0.75 per litre, which increases the price of gasoline by $0.50 per litre.What is the new equilibrium quantity of gasoline demanded after the tax is imposed?

• A)37.67 billion gallons per year
• B)38.91 billion gallons per year
• C)39.21 billion gallons per year
• D)40.52 billion gallons per year

Grasp the maturity matching principle and its application in financing.

Understand inventory management techniques including JIT and its impacts on financing and operations.

Analyze the pros and cons of stretching payables and its effect on liquidity.

Recognize different sources of short-term funding and their implications for working capital management.

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Definitions:

AWS E-7018

A specification for low-hydrogen, medium penetrating welding electrodes, ideal for structural steel welding with high tensile strength requirements.

MIG Weld

A welding process known as Metal Inert Gas Welding, which uses a continuously fed wire electrode and shielding gas to create a weld.

Base Plate

A flat piece used as a foundation or mounting surface in various mechanical and architectural applications.

Compensating Fifth Wheel

A fifth wheel designed to articulate fore and aft, and side to side. Used to limit trailer torque effect transfer; the Holland Kompensator would be an example.