Asphalt is the refined residue from crude oil. When gasoline prices are high, oil refiners pull every last drop of gasoline out of a barrel of crude. This would imply that higher gasoline prices mean a(n):
A) increased supply of asphalt, causing lower asphalt prices.
B) increased supply of asphalt, causing higher asphalt prices.
C) reduced supply of asphalt, causing lower asphalt prices.
D) reduced supply of asphalt, causing higher asphalt prices.

Question

Quizplus · Accepted Answer

When refiners extract more gasoline from crude oil, less asphalt is produced, leading to a reduced supply of asphalt. This reduced supply causes prices to increase. Therefore, the correct choice is D.

Asphalt Is the Refined Residue from Crude Oil