What is the elasticity of the price of gasoline considered to be in the United States?

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2006-06-26 12:58:14 · 2 answers · asked by C B 2 in Social Science ➔ Economics

It is inelastic, meaning that a 10% increase in the price results in a decrese of consumption that is less than 10% (and vice-versa)

2006-06-26 14:19:43 · answer #1 · answered by Top 99% 3 · 0⤊ 0⤋

The estimates I have seen suggest about -0.2 in the short-run and about -0.7 in the long-run.

2006-06-27 13:07:50 · answer #2 · answered by NC 7 · 0⤊ 0⤋