​A Gas Station Opened Up on the Highway in a Patch

question 54

Multiple Choice

​A gas station opened up on the highway in a patch where there are no gas stations close by.It is more likely to be able to set higher prices because

• A)​the demand for its product is more inelastic due to an unavailability of substitutes
• B)the demand for its product is more elastic due to an unavailability of substitutes
• C)the demand for its product is more inelastic due to an availability of substitutes
• D)​the demand for its product is more elastic due to an availability of substitutes

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Definitions:

Consumer Surplus

The difference in the total cost that consumers are prepared and able to cover for a product or service and the cost they actually cover.

Economics Textbooks

Books that provide foundational knowledge and analysis of economic principles, theories, and frameworks.

Consumer Surplus

The distinction between what customers can and are ready to pay for a product or service and the amount they end up paying.

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Courses or educational programs delivered over the internet, allowing students to learn remotely.