If price was $2.00 per gallon and decreased to $1.40 per gallon, how does quantity of gasoline demanded change?

The price and demand are inversely proportional to each other, When the price is less, the demand is higher. When the price is high, the demand is low.

So, as given, the gasoline prices has been decreased from $2.00 per gallon to $1.40 per gallon, so now the demand will increase. The quantity of gasoline that will be in demand will increase.

The quantity of gasoline demanded will increase.

Step-by-step explanation:

We are asked to find the change in demand of gasoline, when price of gasoline decreased from $2 per gallon to $1.40.

We know that quantity of a product demanded is inversely proportional to supply of the product.

This means that an increase in price will decrease the quantity demanded, while a decrease in price will increase the demand.

Since the price of gasoline is decreased by $0.60 per gallon, therefore, the quantity of gasoline demanded will increase.