If you regularly spend $100 a month on gasoline and the price of gasoline doubles, your purchasing power has
A) increased.
B) remained constant.
C) became stable.
D) decreased.

Question

Quizplus · Accepted Answer

If the price of gasoline doubles, you will now only be able to purchase half as much gasoline for the same $100 budget. Therefore, your purchasing power has decreased.

If You Regularly Spend $100 a Month on Gasoline and the Price