Suppose that the price of crude oil, the primary raw material for gasoline, increases by 30 percent. Assuming everything else stays the same, by how much has the cost of producing gasoline increased?
A) 35 percent.
B) 32 percent.
C) 30 percent.
D) More than 35 percent.
E) Less than 30 percent.

Question

Quizplus · Accepted Answer

The cost of producing gasoline will increase by less than 30 percent because crude oil is only one component of the total cost. Other costs such as refining, distribution, and marketing remain unchanged.

Suppose That the Price of Crude Oil, the Primary Raw