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Economics, Microeconomics
Year 4
Price and Demand
6. 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.
By OTA: Mutasem Sinnokrot, PhD
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