I found this paper, as wondering what a elasticity of -0.034 to -0.077 indicates in terms of price/demand. For instance, gasoline obviously has some floor for production, but if demand we cut by 10-20% for one year, what would that do to the price? Would it fall all the way to the floor? Or for that matter, if the average member of this site cuts their consumption by 30%, they'll save that much money on a personal level, but given gasoline's lack of elasticity, how much will the reduce the profit made by the sale of that gasoline?
I'm not sure if I'm interpreting this correctly, but if a resource has an elasticity of -.1, and demand drops by .0001 percent, wouldn't that mean price would drop by .001 percent, assuming supply stays the same?
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