Suppose you have been hired as a management consultant by a major oil company to help it optimally price gasoline at its service stations.?
People who have not noticed a gas-price increase 40
People who drive electric cars 35
People who have recently noticed a gas-price increase 70
People who ride their bikes to work 20
People who ride the bus 100
To set up your experiment on how price-increase awareness impacts customer behavior, you would have
(BLANK) people in your treatment group and (BLANK) people in your control group.
Answers
Anjaree
All factors show the decrease in revenues. And the demand is still inelastic. So it should increase the gas price, now.
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