Tuesday, December 22, 2009

What is the supply and demand on oil and gasoline prices?

Is price elasticity of demand considered elastic or inelastic? Are there substitutes available? Is the good a luxury or a necessity? What is the price elasticity of supply for this industry?What is the supply and demand on oil and gasoline prices?
It is totally eleastic. Peak driving times like holidays and the sumer demand is high. Other times the demand is low.

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