Wednesday, July 18, 2007

Oil elasticity

Well now we know. In a poll of 524 Americans who identified themselves as members of "an investor class" (your guess is a good as mine) Reuters tells us that 40% of Americans would curtail driving and pare back other discretionary spending with gasoline prices over $3.50 a barrel. Remember that price is a nationwide average price, so depending on where you live, your mileage elasticity may differ.

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