You operate a gasoline station in Houston, TX. Every Sunday night a truck comes by and fills up your reserve tanks to their capacity. They charge you a price called the wholesale rack price for each gallon of fuel. This price is determined by larger market forces, and you pay whatever the going rate is each day.

Suppose one Sunday you pay $2.00 a gallon to fill up. The next day, you learn that there is a hurricane that is expected to hit the Houston area this week. Anticipating disruptions to the supply network, the wholesale rack price jumps to $2.50. This means that you expect to have to pay $2.50 when you fill up next Sunday.

What is the economic cost of the gasoline that you sell this week? (This is the gasoline that you paid $2.00 to buy yesterday.)

Group of answer choices

$2.00/gallon

$2.50/gallon

Something else