Discussion unit 5

 

How have you responded to increases in the price of gasoline over the past few years? How would you respond if the price of gasoline doubled over the next two years?

What alternatives do you have for buying gasoline? Could you change to zero consumption of gasoline in the short run? In the long run?

In the short run, when the price of gasoline increases, what happens to the income you have to spend on other goods?

Try to use concepts seen in this unit such as budget constraint, income and substitution effects, etc. in your answer.

 

 

 

 

Need a response for Darren

Discussion 5 Darren   4/23/2014 4:11:14 PM
In the last few years I have driven less due to the gas price increase and I know my friends and I will car pool more now than when we were younger. I also now walk more to places in my area when I can and I try and do anything I can to cut back. I will say as of now I couldn’t be at a zero consumption of gasoline, but I have already started to look into alternative energy at my house and I hope within the next 3-4 years I can look at either a hybrid car or a Tesla car which is all electric. I have looked into this already and the only reason I haven’t made the commitment yet is because with an all electrical car it is still limited in my area for use. With higher gas prices people start to see what they can do without and will cut back even if it is some of our guilty pleasures like expensive coffees or just going out to dinner. I know I manage my money and give myself an allowance for be to make purchases that aren’t necessary, but the higher gas prices go the less of that I will allow myself to have.

 

 

 

 

 

 

Need a response for Branden

unit 5 Discussion Branden   4/23/2014 10:56:55 AM
Professor and class

I found this to be a very interesting topic. I think this is something that touches many people since it is something we really cannot live without and we need daily. I have been deeply angered by the price of gas since they continue to raise prices and say they have to have the prices they have but at the end of each quarter and year they record record profits. It does not make much sense to me while people like me and you are struggling they can make record profits. There really aren’t much for alternatives for fuel but one thing I can think of would be public transportation which I have thought about using. Budgeting this is hard as well since you really don’t know how much gas will be tomorrow either. When prices go up I find myself taking from “spending money” accounts to make up the difference. I guess one thing one could do to better the fuel situation would be to either buy a smart car or Prius or something like that or possibly even diesel car. My daughters god father has a Volkswagen Jetta TDI and it gets 47 miles per gallon so I think this would help alot. Thankd for reading.

Branden

 

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