DIYbanter - View Single Post

Kurt Ullman

In article ,
(Roughneck) wrote:

Since oil prices tend to be inelastic (i.e., price changes don't have
a lot of impact on demand,) prices are likely to rise. How much
depends on how successful conservation efforts are.

Where did you get that idea? Every oil shock has produced marked falls
in demand above a certain level. That is where the urban legend about
the life saving capabilities of the 55 mph limit came about. Driving
(and other oil activities) fell off a cliff in the 70s and so did the
fatalities. During that time, the fatalities per million miles driven
stayed roughly the same while the number of miles driven fell.

--
"Distracting a politician from governing
is like distracting a bear from eating your baby."

--PJ O'Rourke