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assume gas is still $4 per gallon and I still make $2000 per month and consume 50 gallons of gas, but no diesel.
assume gas is still $4 per gallon and I still make $2000 per month and consume 50 gallons of gas, but no diesel. If I get a raise to $2500 per month, and my gas consumption increases to 60 gallons, what is my income elasticity of demand for gasoline?