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Construct a 150-200 word response to the problem below (total):
After Iraq invaded Kuwait, gasoline prices rose dramatically - up 50 percent. There were many effects of the increased price of gasoline. describe the following effects in terms of the income effect, substitution effect, or both effects:

a. People drove less and purchased less gas.
b. People ate out less often.
c. People had more tune-ups done on their cars.
d. Bike sales went up.
e. The sale of lottery tickets fell.
f. People took vacations closer to home.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M963078

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