-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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Openness to Experience

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