RE: The potential of banner ads

From: Alex Chudnovsky <alexc_at_jungle.com>
Date: Fri 18 May 2001 11:30:33 -0500

GREG MERRILL <merrill_at_sasm.com> WROTE:

> I can't give you a formula for gas price elasticity but
> it is elastic, JUST NOT VERY.

This is the key -- obviously EVERYTHING is elastic, there
is always a pricepoint that you can't afford (in some cases
force can be used to expropriate goods in question ie like
during wartime, but this is outside of the topic).

The key for petrol/gazoline is that its NOT VERY ELASTIC
comparing to other products/commodities, thus its fair to
call is NOT ELASTIC (as I did). I am glad we agree on that.

> Almost everything has
> elastic pricing, (just to what extent) except for
> maybe oxygen.

Yep.

> Look at the riots and blockades in England last year
> when Petrol prices skyrocketed from the combination
> of high raw gas prices and massive gas taxes. I'm
> personally sensitive to $2.00 gas and altered my driving
> patterns when it got close to that price.

Yep, thats where I am now, I could witness it all. Problem
however with petrol in the UK in early automn 2000
was due to some people who have had enough and they blocked
refiniries. Consequently there was NO petrol available,
at any price.


Alex Chudnovsky



Received on Fri May 18 2001 - 11:30:33 CDT