Use the Information Below to Answer the Following Questions

Multiple Choice

Use the information below to answer the following questions.
Fact 12.1.1 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 12.1.1. Each of these gas stations has little control over the price of gasoline because

A) the price of gasoline is determined by head office.
B) lowering the price will eliminate competition and the government mandates that gasoline stations must have competition.
C) if it raises its price, the station will lose customers.
D) the price of gasoline is set according to the price of oil.
E) the demand for gasoline is perfectly inelastic.