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Econ fueling frustrations

Econ fueling frustrations - transportation For example in...

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Lynette Anderson Econ 201 Steve Jones Fueling Frustrations It's very clear that the cost of fuel is impacting everyone, however the low income families are being impacted the most. When low income families only earn $15,000 annually it's impossible to pay for the ridiculously overpriced cost of gas. Families are forced to make rough decisions between their weekly groceries and gas to get to work just like Ms. Byrd, “Sometimes she makes more significant sacrifices, such as holding off buying groceries until her next paycheck. Ms. Byrd just like other families have had to alter their schedule/routines to save on gas expenses, for example she now makes her doctor appointments on her way home for work. With all these changes there is only so much each individual and families can do to cut back the cost of fuel. One of the major arguments regarding the cost of fuel is the use of public transportation. However, many metropolitan areas have not kept up with the growing population, in particular public
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Unformatted text preview: transportation. For example, in Robin Williams case, she works in Tampa but lives outside of the city and current public transportation routes do not go that far outside of city limits, forcing her to drive 54 miles round trip to work everyday. Robin drives a 1999 Dodge pickup truck that gets seven to eight miles per gallon which means that she quickly goes through about six gallons of gas, about $12 a day commuting to and from work. This scenario gets worse when we look at Robin's annual income. Robin only makes $26,000 annually. These numbers do not seem far. How does this fit into the whole economic model of supply and demand. In microeconomics we are taught that the market will bare the price that we can afford, but based on these two women's situations, along with many others, it doesn't look like people can afford these gas prices. It's very clear that collusion has a role on our gas prices....
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