minus-squarewhyrat@lemmy.worldtoNo Stupid Questions@lemmy.world•How does a ~20% reduction in oil supply translate to a ~60% increase in price?linkfedilinkEnglisharrow-up9·21 days agoMore detailed background: https://en.wikipedia.org/wiki/Elasticity_(economics) Price is rarely 1% for 1%. Some things people will still use in similar quantities even if there are high price increases (e.g. life saving medication). Others people will stop using even if there are small price changes. linkfedilink
More detailed background: https://en.wikipedia.org/wiki/Elasticity_(economics)
Price is rarely 1% for 1%. Some things people will still use in similar quantities even if there are high price increases (e.g. life saving medication). Others people will stop using even if there are small price changes.