Comment by SR2Z
Gas consumption is inelastic in the short term, but everything is elastic in the long term.
If you want proof of this, just look at what happens to sales of large vs small cars when the price of gas changes.
Gas consumption is inelastic in the short term, but everything is elastic in the long term.
If you want proof of this, just look at what happens to sales of large vs small cars when the price of gas changes.