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The Price Equation is a mathematical formula. It is used to determine the changes of a specific factor from one generation to another. In regards to the purchase price of gasoline, an airline ticket, and a chequing account the Price Equation can be used to determine the differences and similarities in these factors through the generations. For instance, the prices of all three may have gone up through the generations but the usage may not have gone up for all three.

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Q: How would the price equation apply to the purchase price of gasoline an airline ticket and a chequing account?
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What is a checking account frequently referred to as?

A checking account is also called a transactional account or chequing account.


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