Describe the elasticity of demand that each of these gas stations faces
What will be an ideal response?
Each station's elasticity of demand is very high. When one station raises its price even a bit, it loses a lot of customers to its competitors. And when one of the stations lowers its price, it gains a lot of customers from its competitor.
Economics
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Other things being equal, the quantity of money that people wish to hold in currency and their checking accounts can be expected to:
a. increase as the interest rate increases. b. decrease as the interest rate increases. c. decrease as real GDP increases. d. none of these.
Economics
The settling of any net deficit in the combined current, and capital and financial accounts is done with:
A. Capital reserves B. Official reserves C. Net transfers D. Net investment income
Economics