An expected future increase in the price of gasoline may
A)increase the demand for gasoline now.
B)decrease the demand for gasoline now.
C)increase the supply of gasoline now.
D)make gasoline an inferior good.

Question

Quizplus · Accepted Answer

If people expect the price of gasoline to increase in the future, they will be more likely to buy and stock up on gasoline now, leading to an increase in demand. This is because they want to avoid paying higher prices in the future, and are willing to pay the current price instead.

An Expected Future Increase in the Price of Gasoline May