Answer to Question #120045 in Economics for Adjodah Vignesh

Question

Following the rise in the price of gasoline, it has been reported that fuel consumption falls by more than the number of vehicle trips. How could this have come about?[6]

Answer 1

If the rise in the price of gasoline cause fuel consumption to fall by more than the number of vehicle trips, then people use individual transport less and public transport more, so the fuel is used more efficiently.