Quote:
Originally posted by Not Bob
At any rate, I am pretty sure that the inelasticity of the demand for gas (oooh, am I saying that right, Burger? It's been a while since Econ 101) is a significant part of what led to the influx of more fuel efficient imports in the 1970s.
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Long run elasticity of demand is much greater with gasoline, because people buy more fuel efficient cars and change driving patterns.
