Suppose that more people want to move from Miami to Phoenix than want to move from Phoenix to Miami.It is likely that U-Haul rates will be relatively ______________from Phoenix to Miami since the ___________________.
A) lower; demand for moving to Phoenix is greater than demand for moving to Miami
B) higher; demand for moving to Phoenix is greater than the demand for moving to Miami
C) higher; supply of moving trucks is greater in Phoenix than in Miami
D) lower; supply of moving trucks is lower in Phoenix than in Miami

Question

Quizplus · Accepted Answer

The U-Haul rates will likely be lower from Phoenix to Miami because the demand for moving trucks in Phoenix is lower due to more people wanting to move from Miami to Phoenix than the other way around. This creates an excess supply of trucks in Phoenix, leading to lower rental rates to encourage their use.

Suppose That More People Want to Move from Miami to Phoenix