If the Price of Gasoline Goes Up, and Dan Now

question 223

Multiple Choice

If the price of gasoline goes up, and Dan now buys fewer candy bars because he has to spend more on gas, this would best be explained by

• A) the substitution effect.
• B) the income effect.
• C) the highly elastic demand for gasoline.
• D) all of the above.

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Definitions:

George Ritzer

An American sociologist known for his work on consumerism, globalization, and the concept of "McDonaldization," which describes the process by which principles of the fast-food industry dominate sectors of society.

Prosumer

A portmanteau of producer and consumer, indicating individuals who produce some of the goods and services entering their consumption.

Consumer

An individual who purchases goods and services for personal use from the available offerings in the market.

Deterritorialization

A concept in socio-cultural studies that refers to the weakening of the ties between culture and geographical location, often as a result of globalization.