
The average price of gasoline in your neighbourhood is $1.30 per litre.Your neighbour, Diana tells you that you can "save a lot" by frequenting a gas station 30 kilometers outside your neighbourhood where the price of gasoline is $1.15 per litre However, she cautions you that there are usually long lines at that station.Is her suggestion beneficial to you?
A) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
B) No, if one factors 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.
C) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods.
D) No, my friend is misled; clearly, the lower priced gasoline must be of inferior quality and could damage vehicles.
Correct Answer:
Verified
Q100: Which of the following is used to
Q101: Professor Parallax chooses two students in his
Q104: If you exhibit the endowment effect as
Q106: Which of the following demonstrates the endowment
Q107: The pair of handmade green leather Italian
Q156: A good is path dependent when
A)consumers get
Q173: Which of the following is an experiment
Q198: List three reasons why demand for a
Q209: Which of the following is a common
Q210: Consider the following hypothetical scenarios:
Scenario A: You
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents