Your friend tells you that demand for gasoline in the United States increases in the summer...
Your friend tells you that demand for gasoline in the United States increases in the summer because people travel more, and this causes the price of gas to increase in the summer. The friend argues that this is evidence that the "law of demand" doesn't apply for gasoline. Is the friend right or wrong?
Homework Answers
He is wrong, as per the law od demand in the market an increase in the price of the goods will decrease the quantity demand for the goods keeping the other thing like preference, income and price of the substitute and other things constant.
Here, we have changed the preference of the people while using gasoline so the law of the demand doesn't apply in market anymore.
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Your friend tells you that demand for gasoline in the United
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