The peak oil crisis: peak oil elasticity
Most of us can recall from Economics 101 the concept of elasticity of price demand which says that in most cases as the price of something goes up, the demand for the product or service goes down. Studying the elasticity of gasoline prices has been very popular recently and that in the last 20 years there have been well over 100 papers written on the elasticity of gasoline prices.
The general conclusion of these efforts is that gasoline demand in motorized societies such as the U.S. falls slowly. In the very short run, motorists have no choice but to spend whatever it costs to keep their automobiles and trucks running for their livelihoods depend on it.