Knowledge Problem

Mankiw: Nothing Funky Going On at the Rental Counter

Michael Giberson

At Greg Mankiw’s blog he cites a Wall Street Journal article claiming some “funky economics” are happening at the car rental counter, as renters increasingly are choosing smaller, more fuel-efficient cars in the face of higher gasoline prices. As Mankiw points out, there’s nothing funky going on, Gas and Guzzlers are Complements.