Question

In: Economics

Suppose gas costs $3 a gallon and the average car gets 28 miles per gallon. If...

Suppose gas costs $3 a gallon and the average car gets 28 miles per gallon. If Congress mandates that cars have to get 36 miles per gallon, by what percentage will this lower the costs of driving? If the elasticity of total miles driven (per year) with respect to the cost of driving is –1, by how much will total miles driven per year increase, assuming it is 10,000 miles at the beginning? How much will total annual gas consumption of the average car change as a result of the mandated program?

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Suppose gas costs $3 a gallon and the average car gets 28 miles per gallon. If...
Suppose gas costs $3 a gallon and the average car gets 28 miles per gallon. If Congress mandates that cars have to get 36 miles per gallon, by what percentage will this lower the costs of driving? If the elasticity of total miles driven (per year) with respect to the cost of driving is –1, by how much will total miles driven per year increase, assuming it is 10,000 miles at the beginning? How much will total annual gas consumption...
The average gas mileage of a certain model car is 28.0 miles per gallon. If the...
The average gas mileage of a certain model car is 28.0 miles per gallon. If the gas mileages are normally distributed with a standard deviation of 0.4 miles per gallon, find the probability that a car has a gas mileage of between 26.8 and 27.2 miles per gallon.   In addition to the answer, please write out your steps and thoughts that led you to your answer.
The mean gas mileage for a hybrid car is 57 miles per gallon. Suppose that the...
The mean gas mileage for a hybrid car is 57 miles per gallon. Suppose that the gasoline mileage is approximately normally distributed with a standard deviation of 3.5 miles per gallon. ​ (a) What proportion of hybrids gets over 61 miles per​ gallon? (b) What proportion of hybrids gets 52 miles per gallon or​ less? (c) What proportion of hybrids gets between 59 and 62 miles per​ gallon? (d) What is the probability that a randomly selected hybrid gets less...
The mean gas mileage for a hybrid car is 56 miles per gallon. Suppose that the...
The mean gas mileage for a hybrid car is 56 miles per gallon. Suppose that the gasoline mileage is approximately normally distributed with a standard deviation of 3.2 miles per gallon.​ (a) What proportion of hybrids gets over 61 miles per​ gallon? (b) What proportion of hybrids gets 51 miles per gallon or​ less? left parenthesis c right parenthesis What proportion of hybrids gets between 59 and 61 miles per​ gallon? (d) What is the probability that a randomly selected...
you currently drive 300 miles per week in a car that gets 20 miles per gallon...
you currently drive 300 miles per week in a car that gets 20 miles per gallon of gas. you are considering buying a new fuel-efficient car for $12,000 ( after trade-in on your current car) that gets 50 miles per gallon. Insurance premiums for the new and old car are $900 and $500 per year, respectively. you anticipate spending $1300 per year on repairs for the old car and having no repairs on the new car. assume gas costs $3.50...
the mean gas mileage for hybrid car is 56 miles per gallon. suppose that the gasoline...
the mean gas mileage for hybrid car is 56 miles per gallon. suppose that the gasoline mileage is approximately normally distributed with a standard deviation of 3.3 miles per gallon a) what proportion of high risk it's over 62 miles per gallon b) what proportion of hybrids gets 50 miles per gallon or less c) what proportion of hybrids gets between 59 and 61 miles per gallon d) what is the probability that a randomly selected hybrid gets less than...
he mean gas mileage for a hybrid car is 5656 miles per gallon. Suppose that the...
he mean gas mileage for a hybrid car is 5656 miles per gallon. Suppose that the gasoline mileage is approximately normally distributed with a standard deviation of 3.23.2 miles per gallon.​ (a) What proportion of hybrids gets over 6161 miles per​ gallon? (b) What proportion of hybrids gets 5151 miles per gallon or​ less? left parenthesis c right parenthesis What(c) What proportion of hybrids gets between 5959 and 6161 miles per​ gallon? (d) What is the probability that a randomly...
Your car gets 22 miles per gallon (MPG) at 55 miles per hour (MPH) and 18...
Your car gets 22 miles per gallon (MPG) at 55 miles per hour (MPH) and 18 MPG at 65 MPH. At what speed should you make a 450-mile trip 1. If gas costs $2.95 per gallon and your time is worth $17/hour? 2. If gas costs $3.80 per gallon and your time is worth $11.5/hour? 3. If gas costs $4.75 per gallon and your time is worth $8.9/hour? 4. Building an Excel spreadsheet to calculate the total trip cost for...
Your car gets 25 miles per gallon (mpg) at 60 miles per hour (mph) and 18...
Your car gets 25 miles per gallon (mpg) at 60 miles per hour (mph) and 18 mpg at 70 mph. At what speed should you make a 600-mile trip: 1. If gas costs $3 per gallon and your time is worth $12 per hour? 2. If gas costs $4 per gallon and your time is worth $15 per hour? 3. If gas costs $5 per gallon and your time is worth $10 per hour? 4. Build a spreadsheet to calculate...
Your car gets 29 miles per gallon (mpg) at 60 miles per hour (mph) and 25...
Your car gets 29 miles per gallon (mpg) at 60 miles per hour (mph) and 25 mpg a 70 mph. At what speed should you make a 525-mile trip: If gas costs $3 per gallon and your time is worth $18 per hour If gas costs $4 per gallon and your time is worth $12 per hour If gas costs $5 per gallon and your time is worth $9 per hour
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT