Table 17-12 the Table Shows the Town of Driveaway's Demand Schedule for Schedule

question 497

Multiple Choice

Table 17-12
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.
-Refer to Table 17-12. If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes is most likely?

• A)Each seller will sell 20 gallons, charge a price of $6, and earn a profit of $80.
• B)Each seller will sell 30 gallons, charge a price of $5, and earn a profit of $90.
• C)Each seller will sell 40 gallons, charge a price of $4, and earn a profit of $120.
• D)Each seller will sell 50 gallons, charge a price of $3, and earn a profit of $50.

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Definitions:

Voucher Checks

A type of check that includes vouchers detailing the reason for the payment, often used by businesses for record-keeping purposes.

Three-Ring Binder

A folder or notebook containing three metal rings that hold paper sheets or plastic sleeves, allowing for easy removal and addition of documents.

Tax Withholdings

The portion of an employee's wages deducted by the employer and sent to the government as partial payment of income tax, to ensure taxes are paid gradually throughout the year.

Stale-Dated Check

A check that has not been cashed or deposited within a specified time frame, typically six months from the date it was issued.