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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
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?
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