Use the information below to answer the following questions.

Fact 11.1.1 Money in the Bank

Two gas stations stand on opposite sides of the road: Rutter's Farm Store and Sheetz gas station. Rutter's doesn't even have to look across the highway to know when Sheetz changes its price for gas. When Sheetz raises the price, Rutter's pumps are busy. When Sheetz lowers prices, there's not a car in sight. Both gas stations survive but each has no control over the price.
Source: The Mining Journal , May 24, 2008

Refer to Fact 11.1.1. Each of these gas stations has little control over the price of gasoline because

Question

Use the information below to answer the following questions. 
 
 Fact 11.1.1 Money in the Bank 
 
 Two gas stations stand on opposite sides of the road: Rutter's Farm Store and Sheetz gas station. Rutter's doesn't even have to look across the highway to know when Sheetz changes its price for gas. When Sheetz raises the price, Rutter's pumps are busy. When Sheetz lowers prices, there's not a car in sight. Both gas stations survive but each has no control over the price. 
 Source:  The Mining Journal , May 24, 2008

Refer to Fact 11.1.1. Each of these gas stations has little control over the price of gasoline because

Answer

if it raises its price, the station will lose customers.

Answer

the price of gasoline is set according to the price of oil.

Answer

the demand for gasoline is perfectly inelastic.

Answer

lowering the price will eliminate competition and the government mandates that gasoline stations must have competition.

Answer

the price of gasoline is determined by head office.

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Use the information below to answer the following questions. Fact 11.1.1 Mon...

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