Essay
There is one gas station in a small rural town.The owner of the station claims that he will sell the same quantity of gas no matter how high or low the price.If he is correct in this assertion, what must be true about the demand curve for gas at his station?
A.It must be vertical with a price elasticity of zero.
B.It must be vertical with a price elasticity of infinity.
C.It must be horizontal with a price elasticity of zero.
D.It must be horizontal with a price elasticity of infinity.
Correct Answer:
Verified
It must be vertical ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q151: A perfectly elastic supply curve is:<br>A) horizontal.<br>B)
Q182: The price elasticity of demand for soft
Q183: There are several close substitutes for Bayer
Q184: If the quantity demanded is 5,000 gallons
Q185: If a good is a luxury item
Q187: Assume the price elasticity of demand for
Q188: If the income elasticity of demand for
Q189: (Table: Prices, Quantity Demanded, and Income for
Q190: Figure: The Demand Curve<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1063/.jpg" alt="Figure:
Q191: An attorney supplies 40 hours of work