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Why Do Gas Stations near Airports Have a Higher Price

Question 114

Multiple Choice

Why do gas stations near airports have a higher price markup than gas stations at busy intersections in the city?


A) Gas stations at busy intersections have to contend with more competition than gas stations within the city.
B) Gas stations within the city are less convenient for consumers than gas stations at the airport.
C) Gas stations at airports face a smaller price elasticity of demand than gas stations in the city.
D) Gas stations at airports have higher fixed costs than gas stations in the city.

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