High Gas Prices Hit Demand as Drivers Cut Back at the Pump

"American drivers are starting to buy less gasoline as they feel the economic burden of record prices that continue to hover near $5 a gallon.

In the first full week of June, gasoline sales at U.S. stations were down about 8.2% compared with the same week last year—the 14th consecutive week that sales have lagged behind 2021 levels, according to surveys by energy-data provider OPIS." (WSJ, June 2022).

FYI

1. The title should read, "Quantity Demanded", not "Demand".
2. I think that "gasoline sales" refers to gallons sold, not sales revenue.

Surging interest rates push mortgage demand down more than 40% from a year ago

CNBC (April, 2022) reports that the law of demand works in the mortgage market. The price of a loan is the interest rate. The article reports that the quantity of mortgages demanded has fallen precipitously as interest rates have risen. The recent surge in the price of houses may have reduced the quantity of houses demanded and therefore reduced the demand for mortgages. How much of the 40% mentioned in the article is a change in demand and how much is a change in quantity demanded is hard to disentangle. 

Robot Subscription Services Let Companies Automate on the Cheap

"I’m paying $10 to $12 an hour for a robot that is replacing a position that I was paying $15 to $18 plus fringe benefits” (Bloomberg, March 2022).

'It's not fun:' Soaring gas prices are walloping Americans but hitting lower-income hardest

USA Today (March 2020) reports that people are buying less gasoline and finding other ways to reduce expensses as gasoline prices "soar".

Study: Seattle's Soda Tax Has Been Great for…Beer Sales?

A study in PLoS One reveals that beer is a substitute for sugary soft drinks (Reason, Feb. 2022).

Kroger Sales Rise as Grocer Benefits From Consumers Eating at Home

Prices, quantities sold, and costs are all increasing at Kroger (WSJ, Dec. 2021). Here are some money quotes.

1. "Kroger Co. KR +0.07% reported strong sales for the latest quarter as consumers continued to opt for eating at home, but said higher supply-chain costs are squeezing its profit.
   
   "The Cincinnati-based grocer said it has more inventory today than a year ago and that it incurred significant supply-chain costs to keep its shelves stocked. At the same time, most products are getting more expensive and the company said consumers are becoming price-sensitive.
2. "The company said it is passing down costs to consumers where possible and is choosing to hold down prices in some areas. It is consulting its historical data to identify which items people are willing to pay up for.
3. "As meat prices remain high, consumers are switching to less costly types of meat or store brands.
4. "grocery sales are higher than they were before the pandemic, as people continue to work remotely and cook more at home."

The article illustrates several concepts.

1. An increase in demand and its impact on price and quantity
2. A decrease in supply and its impact on price and quantity
3. Substitutes, elasticity, and pricing
4. Using data to learn about consumers.

Normal goods and inferior goods in the market for groceries

People are buying fewer groceries as their incomes fall due to the coronavirus pandemic and the end of stimulus checks (WSJ Aug 2020). However, more people are shopping at Dollar General and Dollar Tree.

Quiz: Where is the demand for groceries normal, Publix or Dollar General?

Quiz: Where is the demand for groceries inferior, Publix or Dollar General?

Are Cigarettes an Inferior Good

Cigarettes companies one among the few companies that weathered well the Great Recession in the late 2010s and their sales have remained stable during the early stages of the coronavirus recession (WSJ, March 2020). The article also noted that demand for cigarettes may be decreasing because growing concerns about the adverse impact on the smoker's health and that demand is not decreasing like other products because of social distancing because cigarettes are "antisocial".