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According to the U.S. Energy Information Administration, the average price of a gallon of gasoline increased from $2.24 in January 2019 to $2.85 in May.
According to the U.S. Energy Information Administration, the average price of a gallon of gasoline increased from $2.24 in January 2019 to $2.85 in May. For the following quest no factor that affects the demand for gasoline, other than its price, changed during the months from January to May 2019. Source: U.S. Energy Information Administration, "Petroleum and Other Liquids, Weekly U.S. Regular All Formulations Retail Gasoline Prices," eia.gov. If households in the United States increased their consumption of gasoline during these months, can we conclude that for these households, gasoline was a normal good? O A. No. Given the price of gasoline rose and consumption increased, gasoline must be a Giffen good. All Giffen goods are inferior goods, so we can conclude that gasoline is not a normal good. O B. No, but we can conclude that gasoline was a luxury good. O C. No. To conclude that gasoline is a normal good, we would have to know that less gasoline was consumed as the incomes of U.S. households rose. O D. Yes, we can conclude that gasoline was a normal good
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