A gas station opened up on a stretch of highway where there are no other gas stations

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A gas station opened up on a stretch of highway where there are no other gas stations close by. It is more likely to be able to set higher prices because

a). The demand for its product is more elastic due to the unavailability of substitutes.

b). The demand for its product is more inelastic due to the unavailability of substitutes.

c). The demand for its product is more inelastic due to the availability of substitutes.

d). The demand for its product is more elastic due to the availability of substitutes.

Related Book For answer-question

Managerial Economics Markets and the Firm

ISBN: 978-0618988624

2nd edition

Authors: William Boyes

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Posted Date: Jan 19, 2021 12:23 AM

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A gas station opened up on a stretch of highway where there are no other gas stations

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The demand for its product is more inelastic due to th... View the full answer

Managerial Economics Markets and the Firm

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