price of gasoline rises by 10%  as a result, quantity demanded falls by 5%. Will consumer expenditures on gasoline rise or will they fall? ?

Macroeconomics

4 Answers

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  • Anonymous
    2 weeks ago
    Favorite Answer

    They will go up.  You can show this with any set of numbers.

    Say gas is $3 per gallon and you use 500 gal a  month.  Cost $1500.

    Gas goes up to $3.30 (10% increase).  Gas consumption drops to 475 gal (5% drop).  Cost = $1567.5

    Pick any other numbers, same trend.

  • Clive
    Lv 7
    2 weeks ago

    What does this have to do with personal finance?

  • 2 weeks ago

    Wanna huff some gasoline?

  • 2 weeks ago

    Expense will rise. I forget the equation.  Use the equation 

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