Quote:
Originally posted by Looger@Aug 10 2005, 10:16 PM
can't be sure but i think $1/litre is a mental barrier, a lot of people will take transit if they were borderline before.
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Disagree...
EVERY 10-cent increment is a mental barrier. We always seem to get over them quite quickly and continue our consumption unaffected.
I think the only thing that would seriously affect consumption is a sudden price jump of 100% that would really mess with people's budgets and minds. Only that would provide impetus to radically change habits (ditch the SUV or buy a transit pass).
However, that said...
My resentment over gas prices is not really subsiding as fast as it used to. I still fill up the car, but I feel like I'm getting bent over at the time. This all started when the 3.5 cent "discount" was started, because that just showed me how much of a bunch of crooks the gas companies are.
Any economists here who can tell me how much of a factor gas prices are on the CPI?