Introduction
The demand for gasoline in America fell drastically in 2012. This was primarily attributable to the increased gasoline prices to $4 a gallon. The consumers cut down their consumption by opting to minimize number of kilometer driven per day, opting to use non guzzler vehicles and making use of pooling programs which enables them to share cost of gasoline in their journey’s. This decreased demand for gasoline by 4% an adequate quantity which adequate to justify that demand for gasoline is price elastic.
The consumption of gasoline declined sharply in America in 2012. This is attributable to American motorist’ ...
