The price of gasoline keeps falling. It was close to $3.50 a gallon a year ago, is
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The price of gasoline keeps falling. It was close to $3.50 a gallon a year ago, is $2.59 a gallon now, and is expected to fall below $2 a gallon by year’s end.
Donna buys only two goods: gasoline and pasta. Explain how the events in the news clip change Donna’s consumption possibilities, the relative price of pasta, and her budget in terms of pasta.
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