Henry fords model t was originally designed and built to, Macroeconomics

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Henry fords model t was originally designed and built to

Question: Henry Ford's Model T was originally designed and built to run on ethanol. Today, ethanol (190-proof alcohol) can be produced with domestic stills for about $0.85 per gallon. When blended with gasoline costing $4.00 per gallon, a 20% ethanol and 80% gasoline mixture costs $3.37 per gallon. Assume fuel consumption at 25 mpg and engine performance in general are not adversely affected with this 20-80 blend (called E20).

a. How much money can be saved for 15,000 miles of driving per year?

b. How much gasoline per year is being converted if one million people use the E20 fuel?

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