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Why are consumers so concerned about the price of gas and why are they willing to...

Why are consumers so concerned about the price of gas and why are they willing to search out stations with lower prices?

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Answer #1

The consumer is so concerned about the price of gas because Gas demand is inelastic i.e. even after an increase in the price of gas the demand or consumption of gas doesn't go down. If the price of the gas increases the same consumer will have to pay more to get the desired amount of gas and that will hurt the purchasing ability of that consumer. He won't be able to buy other things and have to cut the budget of other things.

They are willing to search out for stations with lower gas only to get things cheaper. That will keep their purchasing power intact. But, often they end up spending more in search of such cheaper stations.  

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