The Average Price of Gasoline in Your Neighborhood Is US$3

The average price of gasoline in your neighborhood is US$3.53 per gallon. Your neighbor, Diana, tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is US$3.46 per gallon However, she cautions you that there are usually long queues at that station. Is her suggestion beneficial to you?

A) No, if I factor in the non -monetary opportunity costs (driving time and waiting in line) , it could prove more costly to go to the lower -priced gasoline station.
B) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
C) No, Diana is misled; clearly, the lower priced gasoline must be of inferior quality and could damage vehicles.
D) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods.