Suppose you read a newspaper (or online) that the price of the gasoline is up AN

Question

Suppose you read a newspaper (or online) that the price of the gasoline is up AND consumers bought more gasoline. How can laws of supply and demand explain this?

A. The gasoline market is an exception to the laws of supply and demand
B. Supply must have decreased while demand remained constant
C. They cant. The newspaper reporter must have gotten his facts wronf since this would be impossible
D. A non-price factor must have changed, violating the ceteris parabis condition, and be impossible
E. This could be due to an increase in demand with no shift in the supply curve

Explanation / Answer

Suppose you read a newspaper (or online) that the price of the gasoline is up AND consumers bought more gasoline. How can laws of supply and demand explain this?

A. The gasoline market is an exception to the laws of supply and demand
B. Supply must have decreased while demand remained constant
C. They cant. The newspaper reporter must have gotten his facts wronf since this would be impossible
D. A non-price factor must have changed, violating the ceteris parabis condition, and be impossible
E. This could be due to an increase in demand with no shift in the supply curve

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