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A State Implemented a Much Needed Hike in Gasoline Price

question 84

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A state implemented a much needed hike in gasoline price, increasing it by $2. This was followed by a public outcry against the price rise. A year later, the state again increased gasoline price by $2. This time, the public accepted it as essential, though there was a general murmur of dissatisfaction. Which of the following best explains the reason for the public's acceptance?


Definitions:

Budgeted Cost of Raw Material

An estimate of the total cost of all raw materials required for production for a certain period, used in budget preparation.

Required for Production

Required for production denotes the essential resources, materials, labor, and capacity needed to manufacture a product or carry out a production process.

Budgeted Selling Price

The projected price at which a company expects to sell its goods or services in the market during a specific period.

Master Budget

A comprehensive financial planning document that combines several individual budgets within a company, forecasting overall financial activities.

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