Cross-Price Elasticity of Demand

Commercial fishermen are reverting to wind power in response to soaring fuel prices, as skippers rig their boats with auxiliary sails to cut the amount of diesel they use.

The move comes as a new generation of vessels is being developed that will rely almost exclusively on sails.

Higher fuel costs threaten to force many fishermen out of business. The price of the red diesel the industry uses has doubled in less than a year, while fish prices have remained relatively stable.

Powerful things, markets.

1 thought on “Cross-Price Elasticity of Demand”

  1. Gosh, how did these folks manage to come up with a solution on their own?

    Surely there has been a law/regulation passed by some merciful legislature which allowed these fishermen the insight…..

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