The Average Price of Gasoline in Your Neighborhood Is $3

question 106

Multiple Choice

The average price of gasoline in your neighborhood is $3.53 per gallon. Your neighbor Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $3.46 per gallon However, she cautions you that there usually long lines at that station. Is her suggestion beneficial to you?

• A) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
• B) No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station.
• C) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods.
• D) No, my friend is misled; clearly, the lower priced gasoline must be of inferior quality and could damage vehicles.

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Definitions:

Synthetic Synthesis

The process of artificially creating complex chemical compounds from simpler ones, often used in pharmaceuticals and materials science.

Organic Structure

The arrangement of atoms within an organic molecule, defining its specific chemical properties and reactivity.

Reaction Sequence

A series of chemical reactions performed in a specific order to transform a starting material into a desired product through intermediate compounds.

Stepwise Mechanism

A reaction mechanism in which a sequence of discrete steps leads to product formation, each step having its own transition state.