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The Price of a Gallon of Gasoline Increases 10% This

Question 299

Multiple Choice

The price of a gallon of gasoline increases 10% this year. As a result, which of the following events is MOST likely to occur?


A) More people will drive their cars.
B) Public transportation usage will decrease.
C) Gasoline expenditures will increase if gasoline is an inelastic good.
D) Fewer people will ride bicycles, a substitute for car travel.

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