If the price of gasoline decreases but not as much as the decrease in the average price of other goods and services, then the relative price of gasoline
A)cannot be determined.
B)decreases.
C)remains the same.
D)increases.
E)increases or decreases, depending on the price of automobiles.

Question

Quizplus · Accepted Answer

If the price of gasoline decreases but not as much as the decrease in the average price of other goods and services, then the relative price of gasoline increases. This means that gasoline has become relatively more expensive compared to other goods and services.

If the Price of Gasoline Decreases but Not as Much