-Figure 10-1 shows the demand schedule facing the only gas station in a small Midwestern town.The station does not price discriminate.Which of the following statements is correct?
A)The demand curve facing Friendly Stop has a constant price elasticity.
B)If the station increases sales from 100 to 110 gallons,marginal revenue will equal $1.40.
C)If the station increases sales from 100 to 110 gallons,marginal revenue will equal $14.00.
D)Demand is price elastic throughout the demand schedule.
E)The owner of the station would be unwilling to charge either $1.00 or $0.90 per gallon.

Question

-Figure 10-1 shows the demand schedule facing the only gas station in a small Midwestern town.The station does not price discriminate.Which of the following statements is correct?
A)The demand curve facing Friendly Stop has a constant price elasticity. 
B)If the station increases sales from 100 to 110 gallons,marginal revenue will equal $1.40. 
C)If the station increases sales from 100 to 110 gallons,marginal revenue will equal $14.00. 
D)Demand is price elastic throughout the demand schedule. 
E)The owner of the station would be unwilling to charge either $1.00 or $0.90 per gallon.

Quizplus · Accepted Answer

The Answer of 
-Figure 10-1 shows the demand schedule facing the only gas station in a small Midwestern town.The station does not price discriminate.Which of the following statements is correct?
A)The demand curve facing Friendly Stop has a constant price elasticity. 
B)If the station increases sales from 100 to 110 gallons,marginal revenue will equal $1.40. 
C)If the station increases sales from 100 to 110 gallons,marginal revenue will equal $14.00. 
D)Demand is price elastic throughout the demand schedule. 
E)The owner of the station would be unwilling to charge either $1.00 or $0.90 per gallon.

-Figure 10-1 Shows the Demand Schedule Facing the Only Gas