-Figure 10-1 Shows the Demand Schedule Facing the Only Gas

Multiple Choice

-Figure 10-1 shows the demand schedule facing the only gas station in a small Midwestern town.The station does not price discriminate.Which of the following statements is correct?

A) The demand curve facing Friendly Stop has a constant price elasticity.
B) If the station increases sales from 100 to 110 gallons,marginal revenue will equal $1.40.
C) If the station increases sales from 100 to 110 gallons,marginal revenue will equal $14.00.
D) Demand is price elastic throughout the demand schedule.
E) The owner of the station would be unwilling to charge either $1.00 or $0.90 per gallon.