Multiple Choice
When Joe's Gas raises its price for regular unleaded gasoline, total revenue from regular unleaded gas falls to zero. It must be the case that
A) the demand for Joe's regular unleaded gasoline is perfectly elastic.
B) the demand for Joe's regular unleaded is inelastic.
C) there are not many good substitutes for Joe's regular unleaded gasoline.
D) consumers are switching to premium grades of gasoline.
Correct Answer:
Verified
Correct Answer:
Verified
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