Discussion 3.docx - Reference Hubbard G.P O\u2019Brien A.P(2014 Microeconomics(5th Ed Pearson Chapter 6 Gas prices fluctuate often and in both directions

Discussion 3.docx - Reference Hubbard G.P O’Brien...

This preview shows page 1 out of 1 page.

Reference: Hubbard G.P. O’Brien A.P. (2014). Microeconomics (5th Ed.). Pearson. Chapter 6 Gas prices fluctuate often and in both directions. In your initial post, respond to the following: How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer. How does the price elasticity of demand for gasoline impact the effectiveness of taxes on gasoline aimed at correcting a negative externality? I don’t believe that many consumers even myself, would be overly responsive when it comes to the changes in gas prices. If gas prices rise, some consumers may choose to use an alternative (as to not waste their gas) such as: carpooling, public transportation, walking and biking (depending on the distance).
Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes