From Memorial Day weekend to Labor Day weekend, gasoline prices typically increase.
What is the MAIN reason for this seasonal price increase?
A. consumer demand
B. dynamic efficiency
C. excess supply
D. opportunity cost

Option (A). Consumer demand

Explanation: Economist explains that price increases with higher demand because buyers are 'bidding up' the price, however, it is pertinent to note that price increase (if it occurs first) can lower demand. From Memorial Day weekend to labour day weekend , gasoline prices typically increase as a result of consumer demand. Excessive consumer demand of gasoline as a result of the seasonal break will consequently leads to price increase.

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