Gas prices have been fluctuating for as long as anyone can remember. Our parents remember them being in the $1 range, whereas we remember them being around $3.50-$4. The one time that gas hit over $4 was in 2008, when they peaked and then declined. But, unfortunately, gas prices are expected to rise to that $4 mark again this month. They have been raising a fraction of a price each day and this could have a major effect on the amount of driving people will be doing.
In class, we talked about how gas prices are inelastic because no matter how much it is, people still tend to buy gasoline in order to fill their car and get where they need to be. Some are saying they think that people will start to consolidate their errands and car pool more often if the gas prices get out of control.
David E. Parsons of AAA Carolinas said "We expect prices to increase into May,” said Parsons. “The good news is that in the past two years we saw a stabilization or reduction of gas prices once we get into the summer months. We hope that scenario repeats itself again this year.”
If this trend continues, what kinds of things will you do in order to cut back on the money you spend weekly on gas? Do you think that people will change their lifestyles to save money?
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