Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Something kcurie and I were wondering about: what is the price elasticity of oil, and (while we're at it) of uranium?

Defined as

(Price elasticity of demand) = (price / demand) * [(change in demand) / (change in price)]

Can the last politician to go out the revolving door please turn the lights off?

by Carrie (migeru at eurotrib dot com) on Fri Jul 13th, 2007 at 06:39:21 AM EST
[ Parent ]
You can't compare because the oil market is spot and liquid, whereas the U market is mostly legacy multi-decade contracts, the spot is new and marginal.

In both cases, the spot exhibits near zero elasticity. But in the case of oil, it tells much of the true story, where as in the case of U, it may not be significant on the long term.

Pierre

by Pierre on Fri Jul 13th, 2007 at 07:07:55 AM EST
[ Parent ]

Display:

Occasional Series