Suppose Every Buick Owner's Demand for Gasoline Is 20 -

question 4

Multiple Choice

suppose every Buick owner's demand for gasoline is 20 - 5p for p less than or equal to 4 and 0 for p > 4.Every Dodge owner's demand is 15 - 3p for p less than or equal to 5 and 0 for p > 5.Suppose that Gas Pump, South Dakota, has 100 Buick owners and 250 Dodge owners.If the price of gasoline is $4, what is the total amount of gasoline demanded in Gas Pump?

• A)1,500 gallons
• B)375 gallons
• C)1,125 gallons
• D)750 gallons
• E)None of the above.

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Definitions:

Compensating Balances

A minimum account balance that a company agrees to maintain in a bank account to offset the cost of banking services provided.

Transactions Balance

The amount of money held to conduct transactions in the short term, usually reflecting the liquidity needs of an individual or a company.

Accounts Receivable

Liabilities of customers to a firm for items or services supplied, pending payment.

Economic Conditions

The state of an economy at a given time, influenced by factors like GDP, unemployment rates, inflation, and government policies.