In this article, Marshal Cohen, chief industry analyst with market research firm NPD Group says:
"When gas prices go up 5 cents a gallon, that's maybe an extra $10 a week out of consumers' pockets. But when they're going up 15 cents and more, it means $20 extra a week"Let's see. $10 / 0.05 = 200 gallons a week! Even at 10 mpg that's 2000 miles a week! And how does tripling the price increase (to 15 cents or more) only double the cost?! Is this some kind of Non-Euclidian mathematics? Perhaps he's working on proving P=NP on the side and is getting things mixed up? What else does Marshal have to say?
"Last year consumers on average spent $500 more for the year on gas. This year it could go up to $1,000. This is what Lee Scott is worried about. The average American has $2,400 in discretionary spending. A Wal-Mart shopper probably has $1,500. Now take out the $1,000 extra and what does that leave them?"Uhm, $500? Seriously, would you take investment advice from this guy?
3 comments:
That would really be great if he proved P = NP. I still think gas prices are too low.
Too low for what?
Read my post tomorrow.
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