The low gasoline price in Venezuela has led to an increased demand for other consumer products. If we consider the gas price as fixed, then the expense on gas can be treated as a constant expense. With low gas prices, consumers who own a car can afford the constant cost of using a car. Therefore, low gas prices in Venezuela have influenced a higher demand for cars. Car sales has greatly increased over the past couple of years, for example car sales increased by 64.6% in the month of February 2007 compared to the sales in the month of February 20062. Also, when the price of gas is low, consumers have a higher disposable income available for consumption of other products. This is shown by data that states that overall private consumer spending increased in 2006 by 21.4%3. Attached graph titled “Effect of the Gas Price Change” illustrates that when the price of gas is low, there is more available income for other products.
The reliance on low gasoline prices and sustenance of......

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Title: Gas And Venezuelan Society
Approximate Word Count: 617
Approximate Pages: 3 (250 words per double-spaced page)

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