Money & WorkFact

Why petrol gets pricier without anyone filling up less.

Price elasticity measures how strongly demand reacts to price changes. For petrol, insulin or salt, people buy almost the same amount in the short run whatever it costs: inelastic. For restaurant visits or brand clothing, a small markup keeps customers away: elastic. Companies and finance ministers know this precisely.

Useful: Taxes prefer inelastic goods like tobacco and fuel because you keep buying anyway.

Source: de.wikipedia.org

NachfragePreise Wirtschaft

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