David Opderbeck wrote:
...
> Demand is "elastic" if demand is relatively sensitive to incremental changes
> in price. Demand is "inelastic" if demand is relatively insensitive to
> incremental changes in price.
> For most of us, I suspect that demand for energy is not very elastic. A
> relatively small fluctuation will cause us to change behavior -- lower
> thermostats, not driving as much, etc. For the very wealthy, however,
> demand for energy probably is more elastic. They aren't likely to
> notice a few thousand dollar increase in cost of electricity for the
> swimming pool.
...
Good note! In the 2nd paragraph don't you mean that for most of us the
demand is elastic, as if the cost of gasoline doubles we will drive
considerably less whereas for the well off like Gore, it will not cause
them to reduce their annual mileage much. It seems to me that the
progressing tax needs to hit both the fuel cost and the original SUV
cost as well.
Dave W
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Received on Fri Mar 2 17:00:14 2007
This archive was generated by hypermail 2.1.8 : Fri Mar 02 2007 - 17:00:14 EST