Question

At the gas station, if a customer at the next pump buys X gallons of gasoline, and the pump shows a cost of Y dollars, how much will you pay for gasoline?

a. X dollars
b. Y/X dollars
c. Y dollars
d. X/Y dollars

Answer 1

You would pay Y/X dollars per gallon of gasoline, as the cost Y dollars is for X gallons. The correct answer is b.

Step-by-step explanation:

If a customer at a gas station buys X gallons of gasoline and the pump shows a cost of Y dollars, to find out how much you will pay for gasoline, you need to consider the price per gallon. If the next customer's total cost is Y dollars for X gallons, the price per gallon would be Y divided by X, or Y/X dollars per gallon.

Therefore, if you were to buy gasoline at the same price per gallon, you would pay Y/X dollars for each gallon you purchase. The situation described in the provided information, where the price of a gallon of gasoline is above the equilibrium price, influencing the quantity demanded.

The quantity supplied, is a concept from economics that illustrates the laws of demand and supply. However, this economic context does not alter the basic mathematical fact that your cost for gasoline depends on the per-gallon price at the time of your purchase.