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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (21588)	1/17/2005 4:58:23 PM
From: Rutgers	Read Replies (2) \| Respond to of 116555

re: price elasticity of gasoline IMO, for first time in United States history, I think the strangehold of gas is looking less serious on a longer term basis as alternative fuels are making significant and real progress. As point of fact, have you seen the # of hybrids currently offered by various mfrs? They even offer SUVs and Pickups. Unlike the first electric cars purchased by Hollywood actresses, I think Johnny and Jane Public will purchase enuf of these to make them profitable. Moreover, with California, New York and a few others, hydogen/fuel cells modal of transportation is probably less than 10 years from reality. In short, I d/n think we'll see a repeat of the long gas lines from '73-74.

To: CalculatedRisk who wrote (21588)	1/17/2005 7:25:40 PM
From: patron_anejo_por_favor	Respond to of 116555

<<Both the supply and demand curves are very steep for gasoline. This leads to large price swings. In the short term, the demand for gas is fairly inelastic. In the medium term (say 5 years), gas use is elastic ... people will use less, buy smaller cars, etc ... and more production will come on line.>> Exactly.