The price of gasoline has risen and the quantity sold has fallen. This was likely caused by
A) a rise in the price of crude oil.
B) a seasonal rise in the demand for gasoline.
C) use of a new public transit system.
D) the discovery of crude oil deposits in South Dakota.

Question

Quizplus · Accepted Answer

The rise in gasoline prices is likely due to a rise in the price of crude oil, which is a major input in the production of gasoline. As the price of crude oil rises, the cost of producing gasoline also rises, leading to an increase in the price of gasoline. The decrease in quantity sold may be due to consumers responding to the higher prices by using less gasoline or looking for alternative means of transportation.

The Price of Gasoline Has Risen and the Quantity Sold