1. Business
  2. Economics
  3. suppose the price of regular octane gasoline were 20 cents...

Question: suppose the price of regular octane gasoline were 20 cents...

Question details

Suppose the price of regular octane gasoline were 20 cents per gallon higher in New Jersey than in Oklahoma.

Do you think there would be an opportunity for arbitrage (i.e., that firms could buy gas in Oklahoma and then sell it at a profit in New Jersey)?

Why or why not?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution