A Gas Station Owner in a Large City Learned in His

question 318

Multiple Choice

A gas station owner in a large city learned in his microeconomics class that buyers are relatively unresponsive to changes in the price of gasoline. If that assumption is correct, when he increases the price of gas at his station

• A) total revenue will increase.
• B) total revenue will decrease.
• C) total revenue will not change.
• D) the sale of complementary goods at his station will increase.

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Definitions:

Firm Commitment Underwriting

A type of underwriting in which an underwriter commits to buying all the securities offered by the issuer and assumes full financial responsibility for any unsold securities.