Gas & Oil News

Economics 101, Elasticity of Demand; The responsiveness of the quantity purchased of an item to changes in the item's price. If the quantity purchased changes proportionately more than the price, the demand is elastic. If the quantity purchased changes proportionately less than the price, the demand is inelastic. For example, the price increase of Gasoline has a relatively small effect on Gasoline consumption; thus, the demand for Gasoline is inelastic. Now this being true with Gasoline, there is an alternative course of action. That is, one must get more value out of the Gasoline purchased to off set the price increase. The desire to get more value out of the money one spends on Gasoline, will only accrue when disposable income is restricted to the point it has a negative impact on other purchases. In other words, if you have to do without something to buy Gasoline, you must conserve Gasoline or just do without other things!
Davitte’ Lanier
Petroleum Industry Analyst