1) If you are unfamiliar with the concept, please investigate the concept of price elasticity of demand. After becoming familiar with the concept then state whether you believe that gasoline is price elastic. Based on your answer, and then determine what the oil companies should do with respect to the pricing of gasoline.
2) The reduction of labor costs by incurring a greater amount of fixed costs through purchase of machinery in order to increase the organization's operating leverage is unethical and should be avoided. What do you think?