What are the consequences of gas price rise?

Answer 1

People theoretcially should start driving less.

Answer 2

Statistically, when the prices go up, people tend to re-evaluate their situations and adjust their lifestyles accordingly.

There have been random television interviews with people at gas pumps right after the price shot up dramatically and for the most part, it seemed as though a lot of people decided to change vacation plans and just stay close to home.

Personally, I find myself planning a lot more so as to avoid any "extra" trips to the store. Most people I know pretty much do the same thing in an effort to save $.

The economic implications of price changes affect all of us in what it costs to live because everything we use on a day to day basis must be trucked in. The cost of transportation has to be passed on eventually to the consumers by increased cost of the products.

Also, I think most consumers are reluctant to buy the "gas guzzlers" with the big engines when the cost of fuel is so high.

Answer 3

In the short run, gas users would pay more overall. This is because the higher price would cause some loss in quantity demanded, but because the inverse demand curve for most fuels is quite inelastic (steep) that lost quantity demanded would be small. Fuel price hikes tend to ripple through the economy. If it was just for gasoline, it's effect would be less than an increase in a barrel of oil (which might affect all fuels). You might see increases in cab fares, some transport companies may charge more for deliveries and people might buy less of other goods as they try to pay for higher commuting costs.
Car owners may consolidate car trips (drive less), carpool or take the bus if the increases are steep enough.

In the long run, if the price increase is high and sustained, people may switch to more fuel efficient vehicles as their older vehicles come to the end of their usable limits. (no more Hummers. Yeah!)

Peace

Answer 4

Gas is one of the things people will not do without.
in order to buy the gas they want, they will stop buying other things to buy the gas, as they only have so much money to spend...If they have to pay more for gas, they have less to spend somewhere else. so the economy starts to slow , compared with times of lower gas rates.
also, goods that depend on transportation , rise and put more pressure on the economy.

Answer 5

every other product prices also rises. because for most businesses, transport is important. that's where the money usually go to, so businesses got to raise prices to cover the "lossses".

Hope this helps, Peace.

Answer 6

More benefits for G.W. Bush, Tony Blair and their associates the oil companies.

Answer 7

Less money in your wallet

Answer 8

people get desperate get some exercise.