The decrease in the price of gasoline to a national average of less than $2.0 during the summer of 2016 was most likely a result of
A) an increase in demand due to reduced summer driving.
B) an increase in supply resulting from higher refinery output.
C) an increase in demand due to increase in summer driving along with a decrease in supply resulting from reduced refinery output.
D) an increase in supply resulting from higher refinery output along with a decrease in demand in summer driving.

Question

Quizplus · Accepted Answer

The decrease in the price of gasoline is typically a result of an increase in supply, in this case, due to higher refinery output. Increased supply, with demand remaining constant or not increasing at the same pace, leads to lower prices.

The Decrease in the Price of Gasoline to a National