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mr. abel owns a small chain of gasoline stations in a large midwestern town. he...

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Accounting

Mr. Abel owns a small chain of gasoline stations in a large Midwestern town. He read an article that said the own price elasticity of demand for gasoline in the United States is 0.2. Because of this highly inelastic demand in the United States, Mr. Abel is thinking about raising prices to increase revenues and profits. He has asked for your opinion. Discuss the implications of own price elasticity. Discuss the relationship between price changes, revenue, and own price elasticity of demand. Interpret the -0.2 own price elasticity of demand. Do you recommend that Mr. Abel raise prices

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