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View Diary: Peak oil and peak silliness (111 comments)

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  •  Little "Demand Elasticity" Or Substitutes (1+ / 0-)
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    We mostly get stuck paying whatever price they want.

    There’s always free cheddar in a mousetrap, baby

    by bernardpliers on Fri Apr 05, 2013 at 08:45:42 PM PDT

    [ Parent ]

    •  In the short term, true (1+ / 0-)
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      Demand for gasoline and diesel in the U.S. is essentially inelastic.  Doubling the price of gasoline would reduce demand by 20% or less.

      In the longer term, people would change jobs, move, buy more efficient cars, etc., reducing demand substantially.  All of those things are hard to do quickly.  

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