Multiple Choice
You are the manager of a gas station and your goal is to maximize profits.Based on your past experience,the elasticity of demand by Ohioans for a car wash is −3,while the elasticity of demand by non-Ohioans for a car wash is −1.5.If you charge Ohioans $9 for a car wash,how much should you charge a man with a Kentucky license plate for a car wash?
A) $6
B) $15
C) $18
D) $9
Correct Answer:
Verified
Correct Answer:
Verified
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