65 538
Assignments Done
99,2%
Successfully Done
In October 2018

Answer to Question #35573 in Microeconomics for mayank manav

Question #35573
how petrol has inelastic demand?
Expert's answer
Because people need to drive. So even if the price of gas doubles, the demand is not significantly impacted. It is difficult to reduce your own consumption of gas without making big changes (buying a fuel efficient car, taking more public transport, driving less). And even with gas prices the way they are in the US, the financial impact of $3 gas vs $1 gas is still less than the cost of auto insurance, so in real terms the impact is not great on the average American. In Europe, much higher prices has fueled demand for diesel cars but driving habits have not changed significantly.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions