If the price of gasoline continues to rise, the
A) demand for substitutes for gasoline decreases.
B) quantity demanded for substitutes for gasoline increases.
C) quantity demanded of gasoline increases.
D) demand for gasoline decreases.
E) quantity demanded of gasoline decreases.

Question

Quizplus · Accepted Answer

When the price of gasoline increases, consumers tend to reduce their consumption of gasoline, resulting in a decrease in the quantity demanded of gasoline. This is because gasoline is a normal good, and as its price rises, consumers seek to substitute it with less expensive alternatives or reduce their overall consumption. Therefore, the demand for gasoline decreases only in terms of the quantity demanded, not the entire demand curve.

If the Price of Gasoline Continues to Rise, the