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When the Price of Gasoline Increases Consumers May Purchase More

Question 31

Multiple Choice

When the price of gasoline increases consumers may purchase more gasoline than before, if their incomes are rising as well.Concluding that there is a positive relationship between gasoline prices and the quantity demanded would be an example of:


A) the post hoc fallacy.
B) the failure to hold other things constant.
C) the fallacy of composition.
D) a mixed market economy.
E) none of the above.

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