Question

Which of the following is a predictable, secondary effect of a sharp increase in gasoline prices?

a. Increased demand for gas-guzzling vehicles
b. Reduced public transportation use
c. Decreased consumer spending on non-essential items
d. A decrease in the use of alternative energy sources

Answer 1

A sharp increase in gasoline prices leads to decreased consumer spending on non-essential items.

Step-by-step explanation:

A predictable, secondary effect of a sharp increase in gasoline prices is decreased consumer spending on non-essential items.

When gasoline prices rise, households often cut back on discretionary spending to compensate for the increased cost of fuel. They may choose to forgo vacations, dining out, or purchasing non-essential items in order to afford the higher fuel prices.

This reduction in consumer spending has an impact on the overall economy, as it leads to a decrease in demand for non-essential goods and services, affecting businesses and the job market.