Is $5/gallon enough to make you sell your SUV?
- Thread starter Shawn
- Start date
nope.....
but please stop with the GD gas threads...you people are the reason it does go up to 5$'s
but please stop with the GD gas threads...you people are the reason it does go up to 5$'s
No. The people running the refineries are the reason why gas prices go up. I guess you never took ecnomics, otherwise you'd know that demand is mostly constant for necessities such as gasoline. Supply will be the key determining cost factor I think
JoPh
Diamond Member
- Aug 8, 2002
- 7,312
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but since gas can be viewed as a neccessity good. they are able to charge what they want and people the demand will still buy because they need it.
some may argue its a luxury good. maybe for other countries but the USA i would say is pretty dependent on gas.
some may argue its a luxury good. maybe for other countries but the USA i would say is pretty dependent on gas.
Uh, of course supply has a lot to do with the prices. When people keep talking about it and the media scares people into buying more gas than they should or sooner then they normally would, this increases the demand. As demand continues to increase, prices will do so as well.
theknight571
Platinum Member
- Mar 23, 2001
- 2,896
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Ummm.... prices increasing as a result of demand increasing? What kind of supply/demand curves are you looking at?
If a gas station's supply line remains the same yet the demand has increased. There is no cap on gas prices...no regulation. Therefore, the station will increase prices to maximize profits.
I live in on a back road that gets really snowy in New England, so it's not really an option. I'd like to get an Outback.
So this panic induces people to demand more gas? Wouldn't they fill their tanks regardless of the fact of price? People still need to drive, that fact will never change. Logically, demand isn't even going up, just the prices.
Gas stations are still getting the same amount of cars pulling in for gas regardless of the price of gas. Although gas stations with lower prices will receive more business, the undisputable fact is that THEY FILL UP WHEN THEY NEED GAS.
This is my entire point...becuase of the panic, people arn't filling up when they need gas. Unless of course its on E. People are filling up NOW instead of later for fear of rising gas prices. People are also bringing extra gas containers to fill up out of fear. The panic does create an increase in demand.
SarcasticDwarf
Diamond Member
- Jun 8, 2001
- 9,574
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This is sometyhing most reports fail to take into account. A percentage of the population actually has need of a truck or SUV. Some people live in the middle of nowhere and need a 4WD vehicle. Others have boats/campers or need one for business.
- Mar 20, 2000
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you haven't seen people 'topping off' or filling up those little red cans, have you? that creates demand spikes which cause the price of gas to increase. whereas normally yes, the same number of people are generally filling up each day, if you have everyone top off and fill up red cans you're going to get a very large increase of people filling up. now, once cooler heads prevail you'll see demand have a negative spike of the same area, assuming extra travel didn't happen.
and demand for gasoline is quite elastic in the short run. people do substitute out SUVs for civics. but, rather than most people buying a new car right now, they wait until it makes financial sense to do so.
plus, have you seen the demand increases china has had?
have you seen the refineries going offline in the lead up and aftermath to hurricanes? refineries are already running at 100%, there is no reserve capacity.
have you seen the drop in demand for dollars? much of that has to do with the increase of the price of gas, the fact that we buy an international commodity in the currency it is traded in and that currency happens to be lower against other currencies at the moment. in other countries the increase in the price of gas hasn't happened because the component of the increased price related to the foreign exchange rate hasn't affected them.
JulesMaximus
No Lifer
- Jul 3, 2003
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It is already happening. The big 3 aren't selling as many pickups and SUVs but brands like Honda and Toyota are having banner sales months around here.
Say goodbye to the big gas guzzling SUV! This is just another nail in the coffin!
Say goodbye to the big gas guzzling SUV! This is just another nail in the coffin!
JulesMaximus
No Lifer
- Jul 3, 2003
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I grew up in New England and never owned a 4WD vehicle. The best car I ever had in the snow was a SAAB 99. That thing was a tank and would go through anything.
There is this one guy who used to park cars up by the side of the street for sale on a daily basis and they would sell on the spot. His newest car (old Jeep) has been sitting there for 2 weeks now.
SarcasticDwarf
Diamond Member
- Jun 8, 2001
- 9,574
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Again, true. I am just pointing out the fact that there are a significant number of people that do need them. Consider this, I live in Wiscnsin. Most everyone here has a pickup/SUV or they share one with close family members. Watersports during the summer and snowmobiles during the winter are the main sports here. Furthermore, anyone owning a home north of about Lake Winnebago needs one simply to navigate the roads at any time during the year.
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