Question

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):___________

A. increase in the demand for gasoline.
B. decrease in the demand for gasoline.
C. increase in the supply of gasoline.
D. decrease in the supply of gasoline.

Answer 1

c

Step-by-step explanation:

Answer 2

C. increase in the supply of gasoline.

Step-by-step explanation:

The prices of petroleum products are very sensitive to demand and supply. Petroleum products usually have their prices go up when supply is short, or when demand is high. When there is a decrease in the demand for petroleum products, or an increase in the supply, the value drops, and the price declines.