Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.
$4 Gasoline Could Lead To Demand Destruction In The U.S.
By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.
On the bright side higher gas prices means less money for smack and bullets.$4 gasoline? Lmao. I just filled up @ $5.40/gal. Yes, with $4 gas, I could change my driving habits.
I have plenty of bullets and don't do smack. You have a vivid imagination, as wrong as it is. Don't talk smack.On the bright side higher gas prices means less money for smack and bullets.
Agreed.Gasoline demand is considered inelastic in nature as it changes slowly and by small amounts in response to price changes. Not everyone can change their vehicle from a large gas guzzling SUV to a fuel efficient hybrid in a short period of time.
Yeah, probably. Pretty sure the market responded that way during the mid-70's oil embargo.Watch for trucks and large SUVs to be sold for reduced prices in about 3 months
Gasoline demand is considered inelastic in nature as it changes slowly and by small amounts in response to price changes. Not everyone can change their vehicle from a large gas guzzling SUV to a fuel efficient hybrid in a short period of time.
Watch for trucks and large SUVs to be sold for reduced prices in about 3 months
The term "demand destruction" is about "killing the goose that lays the golden eggs".
In other words, prices reach a point where consumers say "screw it" and change their habits in order to buy and use less of something.
I refuse to continue supporting Netflix since they jacked the price up too high.
Their price jumps caused personal "demand destruction" for me.
Last time I remember is dick and jr.'s invasion of Iraq. $150 a barrel oil.
People were buying more fuel efficient vehicles.
But soon after it passed the large SUV was king again
A temporary halt in the federal tax on gasoline would be nice. Add that to a state halt and most Americans would save about 45+ cents a gallon;
State gas taxes range from just under 10 cents to nearly 60 cents for a gallon of gas while the federal gasoline excise tax was 18.4 cents per gallon as of 2021.
Since it makes sense I do not expect to see this happen.
Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.
$4 Gasoline Could Lead To Demand Destruction In The U.S.
By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.
Hi, rickc!
The usual cautionary note should be appended. What people say may differ more than somewhat from what they will actually do.
Regards, stay safe 'n well 'n remember the Big 5.
I think you are also pointing out how badly the US dollar has been devalued by the political elites.I will have to agree. They may say they will change but most likely they will just get used to the higher price. That is what the oil companies are relying on. They will stop just short of that destruction price.
I drive a truck. Need it for work and to pull my camper.
I can't ever see myself driving anything else.
When I was in high school gas was $0.20 a gallon. Along came the Arab oil embargo and gas lines if I remember correctly gas shot up to $0.32 a gallon. Everyone was bitching.
Now at the end of the Clinton years, just before dick and jr took over I remember paying $0.99 a gallon. Just a few years later a $100 bill wouldn't fill my truck up.
This has been going on a long time. Fuel is something we can't do without. Too bad there isn't a viable alternative after all these years.
Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.
$4 Gasoline Could Lead To Demand Destruction In The U.S.
By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.
I will have to agree. They may say they will change but most likely they will just get used to the higher price. That is what the oil companies are relying on. They will stop just short of that destruction price.
I drive a truck. Need it for work and to pull my camper.
I can't ever see myself driving anything else.
When I was in high school gas was $0.20 a gallon. Along came the Arab oil embargo and gas lines if I remember correctly gas shot up to $0.32 a gallon. Everyone was bitching.
Now at the end of the Clinton years, just before dick and jr took over I remember paying $0.99 a gallon. Just a few years later a $100 bill wouldn't fill my truck up.
This has been going on a long time. Fuel is something we can't do without. Too bad there isn't a viable alternative after all these years.
Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.
$4 Gasoline Could Lead To Demand Destruction In The U.S.
By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.
Not only economics. The reality is that constraining the resource that runs your economic doesn't lead to a functioning economy, no matter how much the desired utopian future state is believed in. Reality doesn't work by believing in Rainbows and Unicorns.Simple economics apparently still isn't simple enough for some.
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