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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (1698)	8/17/2008 11:12:24 AM
From: TimF	Read Replies (1) \| Respond to of 86355

You suggesting conservation won't drive prices down??? No, I'm suggesting, as I had been from the beginning of this sub thread of conversation, that there is no reason to think the price elasticity (of supply or of demand) for oil or gasoline will be 1 (or unitary elasticity). Typically oil and gasoline are relatively inelastic, esp. in the short run. That actually implies (at least in the short run) that reducing demand by x% will decrease prices by more than x%.