11/13/2012
Consumers Change Their look in Response to the Gas Prices
The article starts by lecture about how higher float prices and higher tolls ultimately did what city manager Bloombergs ambitious congestion pricing was supposed to do. When gas prices climbed to to a greater extent than 4 dollars per gallon, traffic on bridges and tunnels dropped 4.7 percentage compared with the previous years. While at the same time, subway, bus and commuter train train riders increased by 6.5 percent. From Manhattan to New Jersey in that location was a 9 percent increase of people taking the train. That goes to show you that pricing does matter and people do suffice to it. And do to the higher gas prices and people driving less(prenominal) tolls took a major hit 4 million downstairs budget.
The fact that the price elasticity of demand for a harvest-feast such as gas will be large the longer the period of time involved. It takes buyers time to adjust their routines as a result of a change in price. Consumers began to look alternatives to driving when gas rose over 4 dollars a gallon. So if high gas prices persist consumers will progress adjustments, such as driving less and taking ordinary transportation more. Those demand for gasoline will become the more elastic.
in that respect for demand becomes more elastic other longer period of time and the quantity of gas demanded will worsen further.
Thinking Critically
1. I dont 100% gibe with Joe, yes sure initially youll make up the loss in quantity sold with the higher price. But if prices continue to fancy up less and less people will buy gas. There for in the long run you will actually stomach money not make money.
2. Conventional Service post will be force either to change their prices to happen the demand to stay competitive or be hale to close up shop. Just like all the florists chrysanthemum and pop shops in small towns when a wal mart gets strengthened because they cant compete.If you want to get a ripe essay, order it on our website: Ordercustompaper.com
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