Are People Going to Drive Less Because of High Gas Prices?
For the past 3 weeks gas prices have increased due to hurricane Katrina.
Do you think that American drivers will drive less to save money or not? Why or why not? Who do you think will be able to drive less if they can in fact do so?
Also, do you feel that businesses that use gas as a major component to their services will suffer or increase their profit due to the rise in gas prices?
For example, pizza shops that depend on gas for their business (delivering, customers driving to the shop), will these shops gain more business due to people not willing to drive to get pizza, and as a result more people will buy pizza that has to be delivered. Or will these shops suffer, due to a lack of customers coming to eat, and the fuel for their delivery cars costing more money.
12 comments:
Higher price will cause a move along the demand curve. people will buy less due to the higher price. they may choose to use publice transportation instead of using their own cars.
A increasing in price may decreases people's demand for certain kind of good (for example gas in this article). As sabrina mentioned, consumers would like to find subsidies for it like public transportation. Further, the increasing in oil price may also shifts the supply curve to the left.
I feel that the increase in gas prices will cause people to drive less frequently, if possible. They will try to use public transportation when able to. According to the pizza scenario, I think people would rather have the pizza delivered than go to pick it up, at least thats how I feel about it. Since the gas prices have rised I have drove less than I usually do and if it is close enough I will walk. Hopefully gas prices will start to decrease, until then I'll use other forms of transportation.
The increase in gasoline prices will reduce the consumption, but only on a restricted basis. The people who are most adversely affected are the people who own businesses that deliver a product/service, truck drivers, traveling sales people, construction workers, etc. These people will not be able to buy less gasoline, nor could they simply pass on the cost to the customer, because this could cause a surplus. The only areas in which people will reduce consumption are in casual use, such as vacations, unnecessary travel, and areas that aren’t a necessity.
I feel there is a huge crisis in gas prices right now. I also think it is time to use our technology and come up with an effecient way to have renewable and affordable energy. PErsonally if gas gets any higher im not sure how I will be able to afford to drive.
I feel there is a huge crisis in gas prices right now. I also think it is time to use our technology and come up with an effecient way to have renewable and affordable energy. PErsonally if gas gets any higher im not sure how I will be able to afford to drive.
I feel there is a huge crisis in gas prices right now. I also think it is time to use our technology and come up with an effecient way to have renewable and affordable energy. PErsonally if gas gets any higher im not sure how I will be able to afford to drive.
As of right now, we have a major problem with the price of fuel. After the Hurricane's hit we assumed that the gas price will go up, so it wasn't a huge shock when we saw the rise. With the gradual rise we have seen in recent times, I feel it will cause people to buy less gas, but not dramatically. There will be many people who cut back on how much gas they will buy, but we live in a world today where people are going to drive no matter what. This also has the potential to hurt smaller businesses more then anything else. If you own a small company that does deliveries or has a few trucks for whatever reason, this will cause your company a lot more money then you had planned to spend of fuel, but its money that has to be spent in order for business to continue to get work done.
I do not feel that the rising gas prices will have much effect on the amount of gas that consumers buy. People have got to get where they are going and right now the most efficiant way is to drive. So consumers have a trade off, poor transportation or spend more money on gas. I think they will spend more money on gas.
A rise in gas prices is obviously going to lower the amount that people drive their own vehicles. Nobody is a fan of high gas prices, and people will try to find other ways to get around. I feel that many people will choose to carpool instead of going separate, people will ride their bikes, and people will walk. When the price for gas went up, the demand for gas went down. People looked for alternatives because their usual choice ended up costing too much. In the case of the pizza i definitley feel that the pizza business will lose out. People will order more delivery costing the company rather than picking up their own pizza and using their own gas. As gas prices increase, personal transportation or demand for gas decreases even if it's just a little bit.
People are slowly becoming accustomed to the higher gas prices. I feel that some may either drive less or buy more fuel-efficient cars. I know from a personal level that my family has made an effort to reduce their own gasoline consumption although most people in the US still feel the need to drive everywhere. I know if we were to improve our public transportation system it may reduce the gas issue and make the general population a little happier about our current economic state.
I think the high gas price will influence the demand, the people will buy less. But I think it is not very much like we think. I agree with some people said, they will use the public transportation when they want to get something or they go to work. If the gas price go up, some people will drive less than before and walk or something to go to there. But there are a lot of things and places you have to use the car to go to there. So, the gas price will influence the time people drive but not much.
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