If your local gasoline station raised its price by 20 percent, its sales of gasoline would decrease substantially because your local gas station
a. has little or no market power.
b. is small relative to the size of the gasoline market.
c. is a competitive firm.
d. All of the above are correct.
d
You might also like to view...
The major difference between the Keynesian approach and the monetarist approach is that
a. Keynesian analysis explains an equilibrium condition and monetarism does not. b. in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates. c. monetarism explains an equilibrium condition and Keynesian analysis does not. d. there are no differences.
If the government wants to generate large revenues from placing a tax on the consumption of a particular good, it should choose a good for which
a. the demand is price elastic b. the demand is unitary elastic c. the demand is price inelastic d. there are many good substitutes available for the good