Question

gasoline companies believe that next year, the price of gas will be lower than it is today. which statement is most correct about the market for gasoline today?

Answer 1

Gasoline prices typically increase in the summer compared to the winter months due to increased demand and people's willingness to pay more. However, this does not predict that the price of gas will be lower next year.

Step-by-step explanation:

The statement that is most correct about the market for gasoline today is that the price of gasoline typically increases in the summer compared to the winter months. This is because people tend to drive more in the summer and are willing to pay more for gas. However, this does not necessarily mean that the price of gas will be lower next year.

Answer 2

The most correct statement about the market for gasoline today, given the belief that next year's gas price will be lower, is: "There will be a decrease in the supply."

How to explain

Gasoline companies anticipating lower future prices typically adjust their current supply. Expecting a drop in prices, they'll likely decrease supply to avoid potential losses.

This decision aligns with their forecast, aiming to reduce current production to prevent an oversupply when prices dip. This action does not signal an immediate increase or decrease in the quantity supplied but indicates a reduction in current supply in anticipation of future market conditions.

Therefore, the most accurate statement about the gasoline market today, considering the expected price decrease, is: "There will be a decrease in the supply."

The Complete Question

Gasoline companies believe that next year, the price of gas will be lower than it is today. Which statement is most correct about the market for gasoline today? There will be an increase in the quantity supplied. There will be a decrease in the quantity supplied. There will be an increase in the supply. There will be a decrease in the supply.