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Based on the substitution effect, which example reflects how people would likely respond to a rise in gas prices
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Based on the substitution effect, which example reflects how people would likely respond to a rise in gas prices

User Mangeshkt
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1 Answer

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Answer:

People will purchase more fuel efficient cars

Step-by-step explanation:

People will purchase more fuel efficient cars in order to reduce the consumption of gas.

Better still, this will also leads to increase in the quantity demanded for electric cars; as they did not require gas to operate.

User Greg Inozemtsev
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