A 0.4 means demand is inelastic, so if the government increases fuel tax and the price goes up, the total revenue collected from the sale will actually increase. People will grumble, but they'll still buy almost as much petrol, because what choice do they have? From my verandah, I watch the same steady stream of cars every Sunday evening, rain or shine, price hike or not. My own Indigo's tank still gets filled, even when I complain about it.
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