As the price of gasoline goes up, people are willing to drive farther to fill their tank
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As the price of gasoline goes up, people are willing to drive farther to fill their tank in order to save money. Assume you had been buying gasoline for $2.90 per gallon and that it went up to $2.98 per gallon at the station where you usually go. If you drive an F-150 pickup that gets 18 miles per gallon, what is the round-trip distance you can drive to break even if it will take 20 gallons to fill your tank? Use an interest rate of 8% per year.
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