You own a gas station and are thinking about raising prices because your cost of the gasoline has increased. You are worried that if you raise the price, the quantity of gasoline purchased by your customers will decrease, thereby lowering your total revenues. Analyze this situation in terms of price elasticity.

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The Answer of You own a gas station and are thinking about raising prices because your cost of the gasoline has increased. You are worried that if you raise the price, the quantity of gasoline purchased by your customers will decrease, thereby lowering your total revenues. Analyze this situation in terms of price elasticity.

You Own a Gas Station and Are Thinking About Raising