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Comments on: The elasticty of petrol demand: Boy (and Girl) Racers http://www.tvhe.co.nz/2009/01/07/the-elasticty-of-petrol-demand-boy-and-girl-racers/ The Visible Hand in Economics Fri, 09 Jan 2009 19:48:45 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: terence http://www.tvhe.co.nz/2009/01/07/the-elasticty-of-petrol-demand-boy-and-girl-racers/#comment-8771 Fri, 09 Jan 2009 19:48:45 +0000 http://www.tvhe.co.nz/?p=2549#comment-8771 A while back on Mark Thorma had some data on this on Economist’s View (sorry running out of time here so can’t dig it up for you) but a more accurate statement is probably ‘inelastic in the short term, more elastic in the medium-long term.’ Which makes sense as it takes people time to reorganise their lives in search of more cost efficient alternatives

]]> By: agnitio http://www.tvhe.co.nz/2009/01/07/the-elasticty-of-petrol-demand-boy-and-girl-racers/#comment-8023 Tue, 06 Jan 2009 22:13:12 +0000 http://www.tvhe.co.nz/?p=2549#comment-8023 Indeed, not many people drive an EVO for its fuel economy!

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/01/07/the-elasticty-of-petrol-demand-boy-and-girl-racers/#comment-8022 Tue, 06 Jan 2009 22:09:22 +0000 http://www.tvhe.co.nz/?p=2549#comment-8022 No matter what – I am sure she is maximising her expected utility

]]> By: agnitio http://www.tvhe.co.nz/2009/01/07/the-elasticty-of-petrol-demand-boy-and-girl-racers/#comment-7994 Tue, 06 Jan 2009 19:34:28 +0000 http://www.tvhe.co.nz/?p=2549#comment-7994 I reckon her van is probably a peice of junk, she said it’s a diesel so it rpob didn’t cost much.

Add to that how much gas an evo VII uses and it MAY be cost efficient if she got a good deal on the van:D

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/01/07/the-elasticty-of-petrol-demand-boy-and-girl-racers/#comment-7993 Tue, 06 Jan 2009 19:29:05 +0000 http://www.tvhe.co.nz/?p=2549#comment-7993 The value of petrol sales rise with the price – therefore I would say that demand is inelastic in aggregate.

Furthermore – to get that type of substitution would require quite a capital investment from Nikki, an investment that likely exceeds the cost associated with the change in petrol price I might add 😛

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