Statement I: The market for gasoline is very local because the money you would save by driving to the next market would be more than offset by the money it would cost you to go there.
Statement II: The market for automobiles is regional rather than local.

Question

Quizplus · Accepted Answer

Statement I is true because the cost of gasoline and the relatively small differences in price between nearby locations mean that it's not economical to travel far for cheaper gasoline. Statement II is true because the market for automobiles is broader, with people often willing to travel to different cities or regions to find a better deal or a specific vehicle model, making it a regional market.

Statement I: the Market for Gasoline Is Very Local Because