Some have accused oil companies of forming a "cartel" to push up gas prices. If the demand for gasoline has a price elasticity of 0.3 (as is estimated), is it likely that this cartel was successful? Put another way: could the oil companies have done better (that is, earned more money) with a higher price for gasoline?
Answers it could be:
A.Elasticity doesn't tell us anything about how successful the cartel was.
B.The cartel could have earned more with a higher price for gasoline.
C.The cartel was successful (that is, it earned as much as it could).
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