Question

Scenario: The price of gasoline in all its forms (unleaded to premium) has suddenly doubled. What will you do? Answer the questions below and number your responses so I know what question you are answering.

1. How, if at all, will your driving habits/gasoline usage habits change?
2. What factors will influence you?
3. How do you use gasoline? Work? Socializing? Getting groceries/supplies?
4. What portion of your discretionary income do you currently spend on gas?
5. How would that change with the price increase?
6. How would your friends/family influence you?
7. Are there any substitutes/alternative for gas usage available?
8. Would timing of the price increase change your responses? Vacation, concert,   etc?

Answer 1

Price of gasoline has suddenly doubled.

• It will induce everyone to drive less or use less of their cars.
• These factors are reduction real income, less money for other goods such as grocery, rent, EMIs.
• We are a way modern by using motorbilkes or cars whereever we go.
• I spend 10-15% of my income on gasoline.
• That spending would not rise by twice as consumers will reduce their consumption by little due to price rise. Spending will become approx. 20% of the income.
• Friends and family would influence to take sharing cars if they are going in the same direction.
• Substitutes are LPG, electric cars etc.
• It depend whether demand of gasoline for you is elastic or inelastic. If demand is inelastic, you will end up spending much more money after price rise which will surely cancel your other plans. On the other hand, if demand is elastic, you will be able to manage with driving less and same money.