lectur14-page61

lectur14-page61 - consumption of gasoline. This of course...

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61 As time progressed: As time progressed: Price Quantity demanded $1.20 $2.20 Q 1 Q 0 In Long Run, consumers have time to find substitutes, and the very large increase in gas price will eventually result in a significant decrease in
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Unformatted text preview: consumption of gasoline. This of course assumes that consumers perceive the increased price of gas to be persistant, not just a temporary price increase. D...
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