Demand for Gasoline Increases on Fridays Because

question 60

Multiple Choice

Demand for gasoline increases on Fridays because

• A) everyone expects gasoline prices will fall on Saturday.
• B) the prices of substitute products fall on Fridays.
• C) the prices of complementary products rise on Fridays.
• D) incomes are lower on Fridays and gasoline is a normal good.
• E) everyone expects gasoline prices will rise on Saturday.

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Definitions:

Transfer Payments

Payments made by the government to individuals, such as social security or unemployment benefits, that do not correspond to a current supply of goods or services.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the market, often influenced by the central bank's policies.

Investment

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Opportunity Costs

The cost of what is forgone in order to pursue a certain action, representing the benefits you could have received by taking an alternative action.