Question

Two gas stations are across the street from each other. Station A lowers the price per gallon by three cents. What is most likely to happen?
A.
The stations will keep lowering prices until they go out of business.
B.
Station B will lower its price to remain competitive with Station A.
C.
Station A will have fewer customers because Station B’s gas is better.
D.
Nothing will happen because people will still buy gas from both.

Answer 1

B. Because if the prices are closer together people will go to both