4 ms·
Another way to think about inelastic is it is relative, not absolute. Textbooks, teachers, and professors, love to use gas as an example of an inelastic produc
by proverbialbunny 6y ago
Another way to think about inelastic is it is relative, not absolute.
Textbooks, teachers, and professors, love to use gas as an example of an inelastic product when teaching the topic. However, if gas hit $100 a gallon you better believe people would be driving less.
- goodcanadian 6y agoYes, gasoline is interesting because demand does seem quite inelastic, especially over short periods of time. If prices remain high for extended periods, you sometimes hear of people changing to more fuel efficient vehicles, but I don't think I've ever heard of people changing their driving behaviour in response to gas prices. I find it particularly interesting because it is one I naively feel like should be more elastic than it is.
- proverbialbunny 6y agoThis was a thing in recent years.. In the 90s it was normal for truck drivers to literally drive 100mph in some parts of the country (No, I'm not making this up. A few states even had no speed limit on their freeway and semis would drive even faster.), but once gas prices rised during the bush administration most companies capped their driver's speed to 62mph to increase mpg. During this time when gas prices shot up people stopped traveling for vacations as much. Ride share programs popped up at this time too. This was the time I got my first remote job, but that may be a coincidence.