3.The price elasticity of gasoline in the United States has been estimated to be 0.15. If this is so, should profit-

maximizing gasoline stations raise their prices? (Explain why or why not.)

4. The price elasticity of demand for gasoline in the United States is equal to 0.15. How should the price

elasticity of demand for the individual firm compare to 0.15 (higher, lower, same, can't tell)? Explain why.