Question

What is the effect on the purchase of gasoline when price decreases from $4.5 to $2.5?

Answer 1

Answer:

Inversely, when gas prices fall, it is cheaper to fill up the tank for both households and businesses, and really eases costs on transportation-focused industries like airlines and trucking—but it also puts a damper on the domestic oil industry. In general, higher oil prices are a drag on the economy.