Question 37 Part 2

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@ Access Codes 6 X > (2068) Lecture X M my.ryerson | my X R Chapter 2 lectur X R Chapter1 lectur X = Assignments Econ ch 2 guest X eco hw 02 Flasl X C‘ 6 openvellum.ecollege.com Take a Quiz/Test Question list 0 Question 37 0 Question 38 0 Question 39 0 Question 40 0 Question 41 0 Question 42 0 Question 43 0 Question 44 Help me solve this U FUIHIS: U UI I Suppose you have been hired as a management consultant by a major oil company to help it optimally price gasoline at its service stations. Your '6 client wants to know what will happen to gasoline demand if it increases gasoline prices by one cent higher than its nearest competitors. One of the members of your consulting team, Debbie, shares that one time in college she stopped buying gasoline from a service station that was one cent more expensive. Based on this story, should you conclude that demand will fall to zero if the client raises gas prices by one cent? No , since this is an argument by anecdote , which can lead to wrong conclusions Instead of relying on Debbie's college story to make a conclusion, you decide it is smarter to collect and analyze a survey of anecdotes collected on the Internet. a survey of other team members' anecdotes. V a large amount of empirical data. a small sample of empirical data. You are able to collect the following data on the impact of a one-cent increase in gasoline prices. Calculate the percentage change in demand for each service station. (Round your responses to two decimal places. If the change is negative, be sure to include a minus sign.) Service Gasoline Sold (thousands of gallons) Gasoline Sold (thousands of gallons) Percentage Station With No Price Increase With 1-Cent Price Increase Change A 1 10 80 D B 160 140 D C 200 180 D D 300 280 D Etext pages Grapher Clear all 6 Pearson Copyright © 2022 Pearson Education Inc. All rights reserved. | Terms of Use | Privacy Policy | Permissions | Contact Us |