Because people usually exploit opportunities to make themselves better off,if the price of gasoline falls and stays low for an extended period,we expect people to:
A)reduce their reliance on gasoline-powered cars.
B)buy larger and less fuel-efficient cars.
C)use more public transportation.
D)ride bicycles.

Question

Quizplus · Accepted Answer

People are likely to buy larger and less fuel-efficient cars if the price of gasoline falls and stays low for an extended period because they will perceive the cost of owning and operating such cars to be lower. This phenomenon, known as the "rebound effect," has been observed in countries where gasoline prices are subsidized or artificially low, such as the United States. While some people may choose to use public transportation or ride bicycles, it is unlikely to be a widespread trend as these options may not be convenient or feasible for everyone.

Because People Usually Exploit Opportunities to Make Themselves Better Off,if