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The owner of seven gasoline stations in Pretoria read an article in a trade publication stating that the own price elasticity of demand for diesel,
The owner of seven gasoline stations in Pretoria read an article in a trade publication stating that the own price elasticity of demand for diesel, which is unregulated, in South Africa is -0.2. Because of this highly inelastic demand in South Africa, he is thinking about raising prices to increase revenues and profits. Do you recommend this strategy based on the information he has obtained? Explain.
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