Use the Following to Answer Question

question 171

Multiple Choice

Use the following to answer question:
Figure: The Market for Gas Stations
-(Figure: The Market for Gas Stations) Use Figure: The Market for Gas Stations.The figure shows curves facing a typical gas station in a large town.The market is characterized by many firms,differentiated products,easy entry,and easy exit.If the gas station shown here were to raise its price above the profit-maximizing price,the outcome would be _____ in total revenue.

• A)a reduction
• B)an increase
• C)no change
• D)Not enough information is given to answer the question.

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Definitions:

Turgor

Pressure that a fluid exerts against a structure that contains it.

Hypertonic

A solution having a higher concentration of solutes compared to another solution, resulting in the movement of water out of a cell if placed in such a solution.

Hypotonic

Describes a fluid that has a low overall solute concentration relative to another fluid.

First Law of Thermodynamics

A principle stating that energy cannot be created or destroyed, only transformed or transferred, in a closed system.