Question

A gas station sells 1600 gallons of gasoline per hour if it charges $ 2.35 per...

A gas station sells 1600 gallons of gasoline per hour if it charges $ 2.35 per gallon but only 1200 gallons per hour if it charges $ 2.70 per gallon. Assuming a linear model

(a) How many gallons would be sold per hour of the price is $ 2.45 per gallon?
Answer:

(b) What must the gasoline price be in order to sell 800 gallons per hour?
Answer: $

(c) Compute the revenue taken at the four prices mentioned in this problem -- $ 2.35, $ 2.45, $ 2.70 and your answer to part (b). Which price gives the most revenue?
Answer: $

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(1 point) A gas station sells 1000 gallons of gasoline per hour if it charges $...
(1 point) A gas station sells 1000 gallons of gasoline per hour if it charges $ 2.30 per gallon but only 900 gallons per hour if it charges $ 2.80 per gallon. Assuming a linear model (a) How many gallons would be sold per hour of the price is $ 2.40 per gallon? Answer: (b) What must the gasoline price be in order to sell 800 gallons per hour? Answer: $ (c) Compute the revenue taken at the four prices...
A gas station owner sees a report on TV which states that the number of gallons...
A gas station owner sees a report on TV which states that the number of gallons of gasoline sold in the U.S. has barely dropped, even as the price per gallon has soared in recent weeks. The price elasticity of demand for gasoline is described in the report as “highly inelastic”. The gas station owner responds to this report by jacking up the prices at his station by 50 cents per gallon. Sales and revenues at his station plummet in...
Demand per hour for gasoline at a local station is normally distributed with a mean of...
Demand per hour for gasoline at a local station is normally distributed with a mean of 875 gallons and std deviation of 55 gallons. What is the probability that demand for a particular hour is between 800 and 900 gallons? Enter your answer as a decimal, rounded to 4 decimal places.
Suppose the volume of gasoline sold on a weekday at a local gas station is known...
Suppose the volume of gasoline sold on a weekday at a local gas station is known to be normally distributed with mean 12,000 gallons and standard deviation 1000 gallons. In addition, the volumes sold on different days are independent random variables. 1. What is the probability distribution of the average volume sold over four weekdays? (Provide the distribution name and all parameter values.) 2. What is the probability that the average volume sold over four weekdays is more than 12,400...
Stan Moneymaker needs 14 gallons of gasoline to top off his​ automobile's gas tank. If he...
Stan Moneymaker needs 14 gallons of gasoline to top off his​ automobile's gas tank. If he drives an extra eight miles​ (round trip) to a gas station on the outskirts of​ town, Stan can save ​$0.15 per gallon on the price of gasoline. Suppose gasoline costs ​$2.40 per gallon and​ Stan's car gets 27 mpg for​ in-town driving. Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of ​$0.03 on...
Stan Moneymaker needs 16 gallons of gasoline to top off his automobile's gas tank. If he...
Stan Moneymaker needs 16 gallons of gasoline to top off his automobile's gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.12 per gallon on the price of gasoline. Suppose gasoline costs $2.90 per gallon and Stan's car gets 25 mpg for in-town driving. Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.03 on...
The gas station retail company you work for is in a price war with its competitors....
The gas station retail company you work for is in a price war with its competitors. None of you can compete on selection since you all sell the same product. You all keep lowering your prices on gasoline in order to drive up sales for your stores. Your boss comes in and says we should lower prices to $1.50 a gallon to really increase demand. How many sales would you expect if the price drops to this level? If this...
Gasworks, Inc., has been approached to sell up to 6 million gallons of gasoline in three...
Gasworks, Inc., has been approached to sell up to 6 million gallons of gasoline in three months at a price of $4.35 per gallon. Gasoline is currently selling on the wholesale market at $4.00 per gallon and has a standard deviation of 56 percent.    If the risk-free rate is 5 percent per year, what is the value of this option? Use the two-state model to value the real option. (Do not round intermediate calculations and enter your answer in...
Oil and Gas Prices. The average gasoline price per gallon (in cities) and the cost of...
Oil and Gas Prices. The average gasoline price per gallon (in cities) and the cost of a barrel of oil are shown for a random selection of weeks from 2009-2010. Is there a linear relationship between the variables? α = 0.05 Oil ($) 78.66 87.23 85.44 81.35 58.11 43.57 Gasoline ($) 2.791 2.929 2.547 2.231 2.479 2.340 Ho: ρ = 0 H1: ρ not equal 0 Step 2: Find the critical value (from table I) (example: .123) Critical r value...
1a) Assume the annual day care cost per child is normally distributed with a mean of...
1a) Assume the annual day care cost per child is normally distributed with a mean of $8000 and a standard deviation of $500. In a random sample of 120 families, how many of the families would we expect to pay more than $7295 annually for day care per child? P(x > 7295) = ____% The number of families that we expect pay more than $7295 is _____ 1b) A machine used to fill gallon-sized paint cans is regulated so that...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT