Common Tragedies

Thoughts on Environmental Economics

Short run vs. long run

Posted by Evan Herrnstadt on May 5, 2008

A brief anecdote:

Yesterday, I was spending time with a friend who lives in rural Maryland, and he mentioned that he’d just sent his resume out in DC looking for a job so he could move into the city. His reason? High gas prices. Driving around Montgomery County every day has simply become too pricey.

We discussed this as he filled up with $3.81/gal gas. It was fascinating seeing short run price inelasticity juxtaposed so immediately on long run price elasticity.

About these ads

One Response to “Short run vs. long run”

  1. Shannon said

    I’d hate to try to do the math on this one. But I can’t wait to see it.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
Follow

Get every new post delivered to your Inbox.

Join 32 other followers

%d bloggers like this: