Finding the economic price point at which consumer behavior changes has always been an issue for businesses. Sometimes market conditions force changes. At other times it is a question of "charging what the market will bear" in order to maximize profit. It is dependent on the price elacity of demand for a particular product or service.
It seems that we have finally reached a critical point in the price of gasoline. Americans are driving less and they are flying less. They also are moving from SUV's to smaller vehicles. Who said the marketplace isn't the best way to address so-called global warming?
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