Ask Question
BusinessBusiness
13 September, 01:12

In the united states, say gasoline costs consumers about $2.50 per gallon. In Italy, it costs consumers about $6 per gallon. What effect does this price differential likely have on: a. The size of cars in the United States and in Italy?

b. The use of public transportation in the United States and Italy?

c. The fuel efficiency of cars in the US and Italy?

d. What would be the effect of raising the price of gasoline in the US to $5 per gallon?

+5
Answers (1)
  1. 13 September, 04:31
    0
    If in the united states, gasoline costs consumers about $2.50 per gallon and in Italy, it costs consumers about $6 per gallon. The effect that this price differential is likely to have is that:

    a. The size of cars in the United States and in Italy:

    Consumers in Italy will opt to have lesser cars than those in the United States because the cost of owning cars is technically in Italy is higher when the price of fuel which is the running cost is considered.

    b. The use of public transportation in the United States and Italy:

    As a result of people not having as much cars in Italy in comparison to consumers in the United States due to higher gasoline costs, the resultant effect will be that more people will have to use the public transport in Italy because there are less private cars in comparison to the U. S. Contrariwise, lesser people will use public transport system in the U. S. because there are more private cars available

    c. The fuel efficiency of cars in the US and Italy:

    Consumers tend to be more efficient when products are more expensive therefore fuel efficiency in Italy will be higher than in the United States because gasoline will almost be like a luxury good while in the U. S. it will be seen as a necessity.

    d. What would be the effect of raising the price of gasoline in the US to $5 per gallon:

    The quantity demanded of gasoline will fall naturally and remarkably by 50% because gasoline is most likely price-elastic. People will sell off their cars and begin to use the public transport system. Those who can afford to keep their cars will be more fuel efficient
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In the united states, say gasoline costs consumers about $2.50 per gallon. In Italy, it costs consumers about $6 per gallon. What effect ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to carry out a major expansion, would you prefer to raise the funds through borrowing or by issuing stock? Explain your choice.
Answers (1)
The first federal retirement benefits were give to veterans of A. World War I. B. the Spanish American War. C. the Mexican War. D. the Civil War.
Answers (1)
Why might lawmakers increase taxes and decrease government spending? A. to reduce unemployment B. to increase consumer spending C. to decrease the level of demand D. to encourage corporate spending
Answers (1)
As the facility manager, you listen to your employees and demonstrate concern and care about their social needs, but still make the decisions. Which management style are you using?
Answers (1)
A client's current drug regimen includes intranasal administration of desmopressin acetate. In this client's plan of nursing care, what is the most likely desired outcome of treatment?
Answers (1)
New Questions in Business
You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year. As the ore closest to the surface is removed it will become more difficult to extract the ore.
Answers (1)
Customer relationship management systems collect the data that can be mined to discover the next product line extension that consumers covet. Group of answer choices false true
Answers (1)
Which of the following statements is the most accurate? a foreign corporation: a. does business in one or more states, but is chartered in another state. b. is 50% owned by individuals or companies from another nation. c.
Answers (1)
Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions) : 2021 2020 Accounts receivable (net) $ 25 $ 36 Net sales $ 135 $ 120 Cost of goods sold $ 80 $ 75 Net
Answers (1)
Which is the correct expansion of the term Internet? A. Internetwork B. Institutional Network C. Instructional Network D. International Network
Answers (1)
Home » Business » In the united states, say gasoline costs consumers about $2.50 per gallon. In Italy, it costs consumers about $6 per gallon. What effect does this price differential likely have on: a. The size of cars in the United States and in Italy? b.
Sign Up Forgot Password?