Why does each of these gas stations have so little control over the price of the gasoline they sell?
What will be an ideal response?
These stations face a large amount of competition, not only from each other but also from all nearby gas stations. If a firm raises its price it loses a vast number of customers so each firm is severely limited in raising its price. And there is no need for a firm to lower its price much below the going price because the firm can already increase its sales drastically with only a slight lowering of its price.
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Use the following consumption schedule to answer the next question. 
Disposable income equals consumption at
A. point D. B. point C. C. point G. D. point A.
Which of the following countries does not employ a value-added tax at the national level?
a. France b. German c. United States d. Canada
If the interest rate is 8 percent, a person who is offered the opportunity to buy an annuity paying $30,000 per year forever should
a. do so if the price is greater than $375,000 b. do so if the price is less than $375,000 c. be willing to pay only $37,037 for it d. be willing to pay $77,037 for it e. be willing to pay no more than $300,000 for it
When money is neutral, which of the following increases when the money supply growth rate increases?
a. real output growth b. real interest rates c. nominal interest rates d. the money supply divided by the price level