Why does everyone react so strongly to abrupt changes in gasoline prices?
Because gas is the most transparent market you can imagine. You can see the current price as you drive around town. Ask anyone the price of gas and they'll they'll probably come up with a pretty good answer. Do the same for a kg of ground beef or 4 L of milk and you'll initially get a blank stare before getting a "maybe close" answer.
Outside of those Montrealers who commute exclusively on the Metro or the REM, most people probably fill up their tanks at least once a week (the Uber drivers likely do it every day). Watching the numbers "spin" on the pumps hurts.
Well, that, and the fact that most people suck at math.
Why does everyone react so strongly to abrupt changes in gasoline prices?
Because gas is the most transparent market you can imagine. You can see the current price as you drive around town. Ask anyone the price of gas and they'll they'll probably come up with a pretty good answer. Do the same for a kg of ground beef or 4 L of milk and you'll initially get a blank stare before getting a "maybe close" answer.
Outside of those Montrealers who commute exclusively on the Metro or the REM, most people probably fill up their tanks at least once a week (the Uber drivers likely do it every day). Watching the numbers "spin" on the pumps hurts.
Well, that, and the fact that most people suck at math.
It's also true then that a 10c/l INCREASE does not really cost that much either...
Exactly.