Comment by SR2Z
3 months ago
Gas consumption is inelastic in the short term, but everything is elastic in the long term.
If you want proof of this, just look at what happens to sales of large vs small cars when the price of gas changes.
3 months ago
Gas consumption is inelastic in the short term, but everything is elastic in the long term.
If you want proof of this, just look at what happens to sales of large vs small cars when the price of gas changes.
I don't know man, gas prices have been consistently pretty high for the last couple of years, meanwhile almost every small car has been discontinued- VW Beetle and Golf, Fiat 500, Honda Fit, Ford Fiesta and Focus, etc... this class of cars basically just doesn't exist anymore.