Elasticity of demand for gasoline in the South Coast Air Basin

An analysis of California gasoline sales was made, using Box and Jenkins' linear time series methods, in an attempt to detect the change due to a 17% change in price. There was no detectable change within the 2% noise limit of the method. Thus, either the elasticity is less than 2 parts in 17, and/or the tools must be further refined to detect it.