-Figure 10-1 Shows the Demand Schedule Facing the Only Gas

question 114

Multiple Choice

-Figure 10-1 shows the demand schedule facing the only gas station in a small Midwestern town.The station does not price discriminate.Which of the following statements is correct?

• A)The demand curve facing Friendly Stop has a constant price elasticity.
• B)If the station increases sales from 100 to 110 gallons,marginal revenue will equal $1.40.
• C)If the station increases sales from 100 to 110 gallons,marginal revenue will equal $14.00.
• D)Demand is price elastic throughout the demand schedule.
• E)The owner of the station would be unwilling to charge either $1.00 or $0.90 per gallon.

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Definitions:

Sugar

A sweet-tasting, soluble carbohydrate that is used to sweeten food and beverages, derived from sources like sugarcane and sugar beets.

Market Shift

A significant change in the supply, demand or overall conditions of a market, which can result from various factors like technological advances or shifts in consumer preferences.

Substitute Good

A product or service that consumers can use in place of another to satisfy the same need or desire.

Price Decrease

A reduction in the cost of goods or services over a specific period.