Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

As a result of a decrease in the price of gasoline, consumers can afford to buy more gasoline for more driving trips. This is an illustration of

Sagot :

Parrain

The actions of the consumers in buying more gasoline when prices drop is the income effect.

What is the income effect?

  • It is one of the determinants of demand.
  • When market prices drop or income rises, consumers have more money to buy more goods.

The price of gasoline dropped and this increased the relative income of consumers because they were able to buy more gasoline.

This is therefore the income effect.

Find out more on the income effect at https://brainly.com/question/1416285.

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.