California imposes strict new regulations on the blending of gasoline that increase production costs.As a result,the:
A) demand for gasoline will increase.
B) demand for gasoline will decrease.
C) supply of gasoline will increase.
D) supply of gasoline will decrease.
E) demand for and supply of gasoline will not change.

Question

Quizplus · Accepted Answer

Strict new regulations on gasoline blending will increase production costs, likely leading to a decrease in the supply of gasoline, as refineries may find it more difficult or expensive to produce the required blend. This, in turn, could lead to higher gas prices and reduced demand for gasoline, as consumers may seek out alternatives or cut back on their usage.

California Imposes Strict New Regulations on the Blending of Gasoline