When the Price of Gasoline Increases Consumers May Purchase More

question 15

Multiple Choice

When the price of gasoline increases consumers may purchase more gasoline than before, if their incomes are rising as well.Concluding that there is a positive relationship between gasoline prices and the quantity demanded would be an example of:

• A)the post hoc fallacy.
• B)the failure to hold other things constant.
• C)the fallacy of composition.
• D)a mixed market economy.
• E)none of the above.

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Definitions:

Working Memory

A cognitive system responsible for temporarily holding information available for processing and is essential for reasoning and the guidance of decision-making and behavior.

Control

The ability to influence or direct people's behavior or the course of events.

Encoded

The process of converting information or data into a particular form, especially for computer processing.

Dopamine

A neurotransmitter in the brain that plays a crucial role in regulating movement, mood, motivation, and the sensation of pleasure.