Quote:
Originally Posted by Ronald Pagan
If your point is that demand for gasoline is inelastic then I would disagree:
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It might not be perfectly inelastic but it's definately relatively inelastic. The big drop in your graph only shows a 10% drop from peak and about 5% drop from average. And wouldn't that graph make more sense for analyzing elasticity if that was price vs demand rather then demand over 2 different years?
Be interesting to see a graph of Canadian demand as in the last few years the price of gas has almost doubled yet i don't think demand has changed much.