3. "Gasoline sells for $4.00 per gallon this year, and it sold for $3.00 per gallon last year. But consumers bought more gasoline this year than they did last year. This is clear proof that the economic theory that people buy less when the price rises is incorrect." Do you agree? Explain.

3. "Gasoline sells for $4.00 per gallon this year, and it sold for $3.00 per gallon last year. But consumers bought more gasoline this year than they did last year. This is clear proof that the economic theory that people buy less when the price rises is incorrect." Do you agree? Explain.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter5: An Introduction To Macroeconomics

Section: Chapter Questions

Problem 2DQ

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3. "Gasoline sells for $4.00 per gallon this year, and it sold for $3.00 per gallon last year.
But consumers bought more gasoline this year than they did last year. This is clear proof
that the economic theory that people buy less when the price rises is incorrect." Do you
agree? Explain.

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