Growth in gasoline demand has been slowing all year. In five of the last seven weeks, the amount of gas that Americans consume has actually fallen compared to the same time last year...In some weeks demand has fallen by as much as 3 percent.
From the EIA, U.S. Retail Gas Prices:
12-17-2007: $2.998
Change from 1 year ago: $0.678
Using my mathematical prowess, the % change in price is 29.22%. So a 29% increase in price leads to a 3% drop in consumption. for an elasticity of .103. That would fall soundly in the inelastic range.
