If your local gasoline station raised its price by 20 percent, its sales of gasoline would decrease substantially because your local gas station
A)has little or no market power.
B)is small relative to the size of the gasoline market.
C)is a competitive firm.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above are correct because a local gasoline station typically has little market power, is small relative to the overall market, and operates in a competitive market, meaning it cannot significantly raise prices without losing customers.

If Your Local Gasoline Station Raised Its Price by 20