Use the Information Below to Answer the Following Questions

question 73

Multiple Choice

Use the information below to answer the following questions.
Fact 11.1.1 Money in the Bank
Two gas stations stand on opposite sides of the road: Rutter's Farm Store and Sheetz gas station.Rutter's doesn't even have to look across the highway to know when Sheetz changes its price for gas.When Sheetz raises the price,Rutter's pumps are busy.When Sheetz lowers prices,there's not a car in sight.Both gas stations survive but each has no control over the price.
Source: The Mining Journal,May 24,2008
-Refer to Fact 11.1.1.Each of these gas stations has little control over the price of gasoline because

• A)the price of gasoline is determined by head office.
• B)lowering the price will eliminate competition and the government mandates that gasoline stations must have competition.
• C)if it raises its price,the station will lose customers.
• D)the price of gasoline is set according to the price of oil.
• E)the demand for gasoline is perfectly inelastic.

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Definitions:

Complete Control

The authority or power to fully manage or govern all aspects of an entity, situation, or mechanism without any external interference.

Trade Surplus

Occurs when a country has a higher level of exports than imports.

Imports

Goods or services brought into one country from another for sale or use.

Exports

Goods or services produced in one country and sold to buyers in other countries, contributing to a nation's economy and corporate revenue.