- Published: October 1, 2022
- Updated: October 1, 2022
- University / College: Loughborough University
- Level: Secondary School
- Language: English
- Downloads: 25
Americans Start to Curb Their Thirst for Gasoline The prices for gasoline have been increasing in the recent past. This has threatened the consumers of the product given that the ability to cope with the increasing prices is low. This hike in prices has compelled the high consumers to reduce their consumption levels to manageable levels. This has decreased the overall demand for gasoline by a small margin. This notwithstanding, consumption of gasoline is inevitable for some consumers. Company asserts that the motorists and motor vehicle operators cannot do without this product but have to contend with the high price (18). Some consumers can also maintain the consumption subject to believe that the prices will stabilize in a short while. Some consumers can resort to other energy sources like wind energy and geothermal energy sources.
The automobile industry is engaging in technologically innovative ways of providing an alternative to gasoline consumption. The industry is producing hybrid class of vehicle, which can survive on rechargeable battery energy. The demand for gasoline has not decreased by a great margin given that there is a shift in the demand for gasoline. According to Campoy motor vehicles are considerably cheap and fuel efficient thus people could not stop buying cheap vehicle because of increase in gasoline prices (27). Most of the working class people drive to work . In this regard, they could not avoid work altogether due to gasoline price hike. The demand increase for vehicles during this period of gasoline increase culminated in a considerable increase in the demand for gasoline. This is because gasoline and motor vehicle are complementary goods, which have a positive price correlation. This is the reason for the shift in the demand for gasoline. This explains how the Americans have managed to solve the hike in prices of gasoline.
Work Cited
Campoy, Anna. Americans start to curb their thirst for gasoline . The Wall street Journal,
2008(7), 12-29.
