26 Jun '15, 1pm

Gas Prices Matter To U.S. Households, But Only Somewhat

By Stephen Edelstein 639 views Jun 26, 2015 Reddit This! Share on Facebook Share on Twitter Gas pump Enlarge Photo Starting in late 2014, U.S. gas prices began to drop significantly, and they've remained comparatively low throughout 2015. With the arrival of the summer travel season, analysts expect prices to increase--as they customarily do at this time every year. That leaves the question of how consumers will react to a potential end of the good times. DON'T MISS: Gas Prices To Rise Again, So Fuel Economy Crucial In New Cars, Consumers Say If gas gets more expensive again, will people drive less? Or will they cut spending in other areas? It appears that demand for gasoline is more or less inelastic, but that fuel costs represent only a small fraction of the average U.S. household's budget, according to an analysis by the Brookings Institution. Because most people use th...

Full article: http://www.greencarreports.com/news/1098886_gas-prices-ma...

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