Which of the following is the best explanation for why the price of gasoline increases during the summer months?
A) Oil producers have higher costs of production in the summer.
B) Sellers have to earn profits during the summer to cover losses in the winter.
C) There is increased driving by families going on vacation.
D) There is less competition among oil refineries in the summer.
E) The number of gas stations open 24 hours a day rises in the summer months and so the price must rise to cover the higher costs.

Question

Quizplus · Accepted Answer

During the summer months, families tend to go on vacation, increasing the demand for gasoline as they drive more frequently and cover longer distances. The increase in demand results in an increase in the price of gasoline.

Which of the Following Is the Best Explanation for Why