This exercise uses monthly data for the US from 1978-2013 to estimate a demand function for gasoline in the US. The demand function is used to calculate the price and income elasticity of demand. Subsequently, it shows how to estimate elasticities in the short and the long run.

Technological and scientific innovation in recent years has opened up much research and development into renewable and alternative energies. Increasing pressure from environmental and governmental groups has led to the investigation of new and cleaner energy sources for the future.

Technological and scientific innovation in recent years has opened up much research and development into renewable and alternative energies. Increasing pressure from environmental and governmental groups has led to the investigation of new and cleaner energy sources for the future.