1、1 Demand price elasticity is a measure of buyers responsiveness to a change in price. The largenumber of estimates of the demand price elasticity of gasoline, for example, based upon empiricalstudies, average about -0.25 for the short run. A demand price elasticity of -0.25 means that thequantity pu
2、rchased will decrease 2.5% in response to a 10% price increase. The short run is aperiod in which a consumer has insufficient time to change equipment or significantly alterbehavior. Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code R
3、S22496August 17, 2006Energy Prices and Tourism: Some Preliminary ObservationsBernard A. GelbSpecialist in Industry EconomicsResources, Science, and Industry DivisionSummaryEnergy prices faced by consumers have risen steeply in the last few years, and it islikely that spending on energy substituted a
4、t least to some extent for spending on othergoods and services. It is widely believed that increases in energy prices, particularlygasoline, negatively affect tourism. The data presented provide partial and preliminarysupport on an aggregate level. On the other hand, there is anecdotal evidence that
