Gasoline prices at $3.00 per gallon, consumers are rushing to purchase hybrid vehicles that get 50 miles per gallon of gasoline. The montly payment on a three year lease of a hybrid is $499 compared to $399 per month on a sedan car that gets 25 miles per gallon. Both vehicles required a one time $1500 payment for taxes, licenses, and dealer changes. Both vehicles have indential lease terms for the residual value, maximun number of miles allowed, with out penalty and so forth.
1) How many miles the consumer must drive pr year to make the hbrid the economical choice over the sedan gasoline car.
2) How does your answer to part (A) change if the price of gasoline is $4 per gallon?