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Discussion Board – Substitution Effect

Views of price elasticity is different for teenagers than adults. Thinking back to when you were a teenager, were you more or less price sensitive than you are now in making gasoline consumption decisions? When you encounter an unexpected increase in gasoline prices now, what is your reaction to the changes in price? Do you apply the substitution effect of your favorite service station (Exxon, Shell, BP, etc.) when prices increase?

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