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To: SaxxonWoods

I can’t imagine that demand destruction isn’t already occurring at current levels.


28 posted on 02/27/2011 4:42:01 PM PST by tatown
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To: tatown

Very little so far. It’s a continuum of course, as the price increases, demand decreases. Gasoline demand is
inelastic, meaning it takes a relatively large move to affect demand (compared to most commodities). The experts were shocked at how long demand held up during the last price bubble. Things didn’t really fall apart until gas got close to $4.00 a gallon. And then the price soon went down again. It did not hang around at the peak price for long.

The best antidote for high gas prices is high gas prices.


31 posted on 02/27/2011 5:29:36 PM PST by SaxxonWoods (Throw away your papers, blow up your TV...and set yourself free.)
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