DrPizza
Administrator Elite Member Goat Whisperer
Originally posted by: b0mbrman
Originally posted by: Staples
Demand for gasoline is inelastic. People complain about the price but guess what? They no one changes their driving habbits.
Hmmm...I would argue that demand for gasoline is more elastic than it should be. That is to say, people change their driving and car-buying habits more than the actual monetary savings should warrant.
a coworker bought a 2nd car for herself because her big SUV was a gas guzzler... she only uses the SUV on weekends (can't remember what it was, it was one of the bigger SUV's... 12 - 14 mpg size)
So, to save $15 or $20 a week on gas, she spent $8000 on a 2nd car.