Economists have noted in recent weeks that the price per barrel of

OFFICIAL EXPLANATION

Overview:

In question 10, the student is asked to consider which of the answer choices most explains the disparity in price drop between the cost of crude oil per barrel and the cost of gasoline at the pump. In order to determine the difference, it is necessary to think about the specific statements made within the passage. This question asks for inferences only inasmuch as those inferences can be made directly from the information in the passage. Several of the answer choices provide distant possibilities, but only one sufficiently explains the discrepancy in price without deviating from the details of the passage. Question 10 presents a scenario involving cause-and-effect, and cause and effect are what students need to consider: what cause directly explains the effect of a drop in the price of crude oil that is not reflected in prices at the gasoline pump?

The Correct Answer:

B Answer choice (B) is the correct answer because it provides a logical explanation for the disparity in price while not deviating from the details in the passage. The cause suggested is that refineries have had to absorb the higher price of crude oil in recent months; this has had the effect of those refineries delaying passing on the lower price of crude oil to customers at the gas pump.

The Incorrect Answers:

A, C Although answer choices (A) and (C) provide some explanation for the drop in the price of crude oil per barrel, they provide absolutely no explanation for the higher price at the gasoline pump, leaving open the question regarding the disparity in price. As a result, both may be eliminated immediately.

D Answer choice (D) also offers some indication about what might affect the price of crude oil per barrel, but it fails to address the discrepancy in price, that is, why the cost of crude oil has decreased without a corresponding drop in prices at the gasoline pump. If anything, answer choice (D) raises further questions, since if there are alternative energy options, the price of gasoline should naturally decrease according to the laws of supply and demand.

E Answer choice (E), although it reflects a potential result of continued low crude oil prices, does not address the question of why gasoline prices are still high in comparison to crude oil prices. While it might be inferred that the loss of oil production companies entails less competition (and therefore higher prices), there is not enough information in the passage to imply such a conclusion or to select (E) as the best answer.