Final answer:
Yes, the total savings on gas are proportional to the number of drinks purchased because the ratio of savings to drinks remains consistent, with each drink saving the buyer $0.20 on gas.
Step-by-step explanation:
Are your total savings on gas proportional to the number of drinks you purchase? The answer is Yes. Proportionality in mathematics means that two quantities maintain a constant ratio to each other. In this scenario, each drink purchased saves the buyer $0.20 on gas. This means if you purchase one drink, you save $0.20; if you purchase two drinks, you save $0.40; and so on. The more drinks you buy, the more money you save on gas, maintaining a consistent ratio of savings per drink, as long as the total savings do not exceed the cost of the gas.
When thinking about how gasoline prices impact driving decisions, consumers may choose to drive less or more based on the current cost of gas. Higher prices might lead to less gas being purchased. Economists are interested in understanding the determinants of price fluctuations for commodities like gasoline, considering factors such as consumer willingness to pay and seller willingness to accept, which are influenced by supply and demand dynamics. For instance, in June 2014, the average price of gasoline was $3.71 per gallon, but by January 2016, it fell to $1.96 per gallon due to various macroeconomic factors.
Data shows that the price of gasoline is typically higher in June than in January due to increased driving in the summer. However, significant price drops, such as from June 2020 when the average price was $3.16 per gallon to January 2021 with $2.42 per gallon, are explained by changes in supply and demand, and not seasonal fluctuations alone.