Figure: The Market for Gas Stations (Figure: The Market for Gas Stations) The figure Market for Gas Stations shows curves facing a typical gas station in a large town.The market is characterized by many firms, differentiated products, easy entry, and easy exit.If the gas station shown here were to raise its price above the profit-maximizing price, it would experience:

Question

Figure: The Market for Gas Stations  (Figure: The Market for Gas Stations) The figure Market for Gas Stations shows curves facing a typical gas station in a large town.The market is characterized by many firms, differentiated products, easy entry, and easy exit.If the gas station shown here were to raise its price above the profit-maximizing price, it would experience:

Quizplus · Accepted Answer

The figure shows that the demand curve facing the gas station is downward sloping, which means that if the gas station were to raise its price above the profit-maximizing price, it would sell fewer gallons of gas and experience a reduction in total revenue.

Figure: the Market for Gas Stations (Figure: the Market