The price of gasoline rises by 33 percent to $3.50 a gallon and stays at that price for the next two years. The quantity of gasoline demanded two years from now will be

Question

Quizplus · Accepted Answer

The quantity of gasoline demanded will be less than one month after the price hike because the price of gasoline has increased by 33 percent, which will make it more expensive for consumers to purchase. As a result, consumers will likely reduce their consumption of gasoline.

The Price of Gasoline Rises by 33 Percent to $3