gasoline price

Get your Assignment in a Minimum of 3 hours

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

Free Inquiry Order A Paper Now Cost Estimate

An econometric analysis of gasoline price data provided the following demand estimates, where log represents the natural logarithm:

Short run: log Q gasoline = 5 – 0.08 log P gasoline

Long run: log Q gasoline = 5 – 0.6 log P gasoline

a. -0.08 is the short-run price elasticity of demand for gasoline. What does this mean in words?

b. Does it make sense that the long-run elasticity is different from the short-run elasticity?

c. What does this imply for the volatility of gasoline prices in the short-run vs. the long run in response to oil price shocks?

"Is this question part of your assignment? We Can Help!"

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Get Started